Instability in Egypt and the potential for dissent to spread across the Middle East, bringing new leaders to states such as Yemen, Jordan or Algeria would not have that big an impact on the world gold price, according to the Vancouver-based chair of London’s World Gold Council, Ian Telfer.
“The bigger impact on gold is the steady economic improvement in China and the consistent demand from India and investors around the world looking for a safe haven,” said Telfer, who is also chair of Goldcorp Inc. (TSX:G; NYSE:GG), the world’s largest producer of Canadian gold.
“Gold doesn’t seem to get moved as much by political developments as it used to.”
Telfer told Business in Vancouver that he bcent pullback from around US$1,420 in December.
“It’s gone straight up for almost 10 years. There’s no surprise that it is pausing a little bit here. I’m very bullish on it going forward,” Telfer said. “Some people say it will go to US$5,000, but I don’t think it’s going to go straight up to that.”