LBMA Chief: Gold to Remain in Focus for Several More Years

SEATTLE (Scrap Monster): According to Ruth Crowell, CEO, the London Bullion Market Association (LBMA), gold is likely to remain in focus for several more years, mainly driven by a combination of geopolitical and macroeconomic uncertainties.

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In a media interview, she noted that the key challenges faced by gold are no different from other commodities in terms of sustainable sourcing. The mandatory requirements implemented by the Association in 2012 have played a significant role in ensuring that only sustainably sourced gold from accredited gold refiners reach the global market. Also, LBMA plans to launch a new draft strategy aimed at delivering progress from a sustainability perspective.

Commenting on why the gold prices have witnessed notable appreciation even amidst negative geopolitical developments and not so encouraging global economic trends, Crowell said that it is due to the strong performance of U.S. dollar. The worsening geopolitical situations may lead to concerns about U.S. dollar holdings and force central banks across the world into more neutral gold holdings.

Also, Crowell stated that the London market has the biggest impact on gold’s price in the entire Western world.