Gold surging on big investments and speculative buying

London

LARGE-SCALE investment and speculative demand have caused the price of gold to surge in the past few months.

The big question is whether this is a bullish or bearish signal for gold as current high prices have curbed gold jewellery and other physical consumption according to on the ground reports.

Demand has been particularly weak in India, a major gold importer, and battles between protestors and police in Hong Kong have generally disrupted jewellery and other businesses, traders say.

In recent weeks when gold jumped from US$1,450 an ounce to a peak of US$1,612 an ounce, speculative buying became frothy according to official exchange…