NZ Mint Head of Bullion Mike O'Kane talks here in our monthly gold market review about the outlook for the gold price and the underlying drivers in the price.
O'Kane looks at the rise in the gold price over the last month as worries about Middle East turmoil lifted demand.
He talks about the concerns around the US dollar's role as the global reserve currency and moves to using IMF Special Drawing Rights, possibly including gold or being priced against gold.
Gold demand and supply is increasingly driven by events in China, he added.
"It's pretty much a watch China show," he said.
China is expected to catch up with India as the world's largest buyer of gold this year and there is a drive by some banks to encourage customers to buy gold.
The World Gold Council's annual review includes more detail on demand from China and its increasing imports.
O'Kane also talks about JP Morgan's move to accept gold as collateral in certain transations.
Gold's role as a form of money, rather than just a commodity, is returning as faith in fiat currencies is corroded, O'Kane said.
"It's slowly but surely moving back into its monetary phase where it's more of a monetary asset than a commodity asset. So JP Morgan accepting gold for repos and stock settlements is a sign it's becoming more acceptable and mainstream to see gold accepted as a replacement for the US," he said.
See more here from Reuters on JP Morgan's decision to accept gold as collateral.
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