Negativity about the global outlook is driving gold

THERE'S a certain irony to the Group of 20 (G-20) powers gathering in gold-obsessed China this weekend - just as they're turning against the yellow metal.

Not only is gold an auspicious colour, culturally, on the mainland, but the People's Bank of China has long been a major hoarder of its bullion form. Less so, though, as central bankers from Beijing to Brasilia cut gold purchases - by 40 per cent in the second quarter alone.

While monetary authorities still hold almost 33,000 tonnes of the precious metal, that marks the third consecutive quarterly drop and the longest streak in five years.