Can gold rally further? The precious metal has hit a succession of record highs, culminating in Tuesday's close of US$1,348 per troy ounce.
There are no signs of a trough in sight, judging by the tone of policymakers at the US Federal Reserve, says the US investment bank Morgan Stanley. The bank revised its "bull case" forecast for the commodity next year to $1,512 per ounce yesterday, up more than 10 per cent from its current position.
"Gold, despite trading at record highs, will also continue to find favour from investors in our view on the back of continued quantitative easing and flat currency devaluation," said Hussein Allidina, the head of commodities research at Morgan Stanley. The minutes from the US federal open market committee (FOMC) meeting on September 21 concluded inflation was likely to remain subdued for some time.
Specifically on gold, the FOMC said "it was prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate". The day after the announcement, gold added 1.4 per cent and has been continuously pushing higher since. In the UAE, the Dubai Multi Commodities Centre yesterday said it registered a 20 per cent increase in the value of gold traded through the emirate to $21.17 billion in the first half of the year. The volume remained steady at 608 tonnes.
With the Fedindicating current economic conditions in the US called for exceptionally low levels for the federal funds rate over an extended period, the expectation is that investment demand will further boost high gold prices. Already, data from the World Gold Council show that since 2002 investment demand as a percentage of total demand has more than doubled to 41 per cent last year, from 14 per cent over the same period eight years ago.
While Morgan Stanley's "bull case" was $1,512 per troy ounce for next year, it said its general forecast was for $1,315. halsayegh@thenational.ae
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The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
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What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
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Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill