The recent decline in the gold price and better-than-expected recovery in the US has led some investors to predict a turn in the gold cycle, which would break a 12-year run of gains for the precious metal.
Angelos Damaskos, CEO of Sector Investment Managers, has warned that a supply crunch could be on the way for the gold market, potentially sending the price up to $2,000/oz.
Demand for oil on the global markets remains robust as demand in developed markets is unaffected by the debt crisis as emerging markets consumption continues to soar.
A wave of gold buying pressure should be expected in coming months, adding to the demand from European central banks, according to Angelos Damaskos, CEO Sector Investment Managers and fund advisor for the Junior Gold Fund.
Gold fund adviser Damaskos sees oversold gold shares.
Angelos Damaskos, chief executive officer Sector Investment Managers and fund advisor, Junior Oils Trust, sees Middle East instability rather than the Japanese crisis as a driver of energy prices.