Commodity watch: Current consolidation in gold good for future uptrend

According to data from the World Gold Council, central banks bought 651.5 tonnes of gold last year, the largest increase in global reserves since 1971.

The consensus on gold is that interest is back. Market participants believe that sentiment on the precious metals has turned more bullish. With central banks like China buying gold for the first time in years and funds that were previously not interested in gold starting to add the metal to their portfolio, investors have been showing more confidence.

Gold could offer the best protection for investors as fears of a recession continue to rise. Two important measures are at levels not seen since World War II -- global debt is at record highs and central banks are buying gold at