GFMS: Gold to average $1,279 an ounce in 2016, up from $1,184 previously

In the Q2 update of its Gold Survey 2016 published Tuesday, GFMS analysts at Thomson Reuters said they lifted their gold price forecast for 2016 in response to jitters over the economic outlook.

Key Findings from the Survey:

Expects gold to average $1,279 an ounce this year, up from $1,184 previously.

Reflects concern over the economic and political landscape, as well as a 24 percent surge in gold prices in the year to date.

Physical Gold demand slides 22 pct to 7-year low in Q2 2016

Demand for gold-backed exchange-traded funds hits half-yearly record in H1 2016

Indian jewellery demand fell 56 percent year on year to 69 tonnes in the second quarter, while net investment was 40 percent lower.

In China, jewellery demand plunged 31 percent, while retail investment was down 12 percent.

Central bank buying nearly halved on a net basis, as Venezuela divested gold and Russian buying contracted.

On the supply side of the market, mine output eased by 2 percent, but overall supply increased by 6.2 percent due to a jump in recycling.