Gold May Bottom Out in Mid-December

From a seasonal point of view, gold price tends to bottom out near mid-December and may soon see a reverse trend. According to World Gold Council (WGC) data, global gold ETF holdings have lost about US$1.3 billion from the peak in September.But even so, gold ETF holdings have increased by almost 35% this year; if the US dollar index falls below 96, gold will likely start to rise again.

Veteran investor Mark Mobius said that if he is to invest US$10 million, hell bet 10% on physical gold. Mobius said in an interview in Colombo that India is the first choice among emerging markets, and he also likes Brazil, China and Russia, followed by Turkey and Indonesia. Mobius founded Mobius Capital Partners last year, and among smaller markets he prefers Sri Lanka and Vietnam in smaller markets, although he says both countries face liquidity issues.