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Gold prices have soared to all-time highs despite a demand paradox

Consumption in Asia has slumped but investment and speculative demand in the west has soared

Some traders contend that it is only a matter of time before gold breaks US$2,000 but others believe the price is over extended and there could be a setback.


INVESTMENT and speculative demand mainly in the US and Europe have pushed the gold price to all-time heights of almost US$2,000. In contrast, consumption in India, China and the rest of Asia has slumped.

The result is that gold is flowing from booming mines through to...

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