ND: Gold expected to trade towards $1,900 in Q4 – Standard Bank
FXstreet.com (Barcelona) - In the middle of August gold prices started to climb, rallying above $1,650, which weighed on physical demand. Nevertheless, this situation lasted just for a short time and a fairly solid demand returned, although below levels seen in 2011.
According to Marc Ground "the physical market continues to be well supported by the Far East" as well as Indian buying. The expert points to two factors, which in his opinion are responsible for the quick return of demand: "after an initial slowdown in buying after a price rise, the physical market adjusts to the higher level and resumes buying" while the onset of the Indian wedding season boosted the need for physical gold further.
The analyst concludes that "the physical gold market should remain a point of mild support rather than resistance" and that "gold will trade towards $1,900 in Q4."
