I think there's still a bit of a hangover from what occurred earlier in the week, the technical picture looks pretty bad and U.S. data has been stronger than expected. I don't expect to see any meaningful bounce until we get to around $1,040 and I think some of these sellers know that.

Victor Thianpiriya

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Ironically, what you actually need to see for physical demand to pick up is for prices to rally, the confidence in gold as a supposed safe haven or as an investment has been battered over the last few years.

Victor Thianpiriya

If anything it's a little bit surprising that we haven't had the safe-haven bid in gold even though you've had these big risk-off moves in the Chinese equity market.

Victor Thianpiriya

We're still expecting a fourth-quarter lift-off in the Fed funds rate and that's when you'll see the trough in gold or we could potentially see gold take another leg lower.

Victor Thianpiriya

Clearly the market momentum is down. We've had a price forecast of $1,100 in the short term, but it looks like the market is certainly trading very much on the weak side and could test levels below $1,100 and stay there for some time.

Victor Thianpiriya

The market looks very technically weak and the biggest buyer of all, China, is now selling gold as opposed to buying it on price dips. That's a recipe for weaker prices.

Victor Thianpiriya

It looks like someone was taking advantage of the low liquidity environment at the moment. It's a bit of speculative selling going on.

Victor Thianpiriya

The exchange-traded funds have come off in the past few days, which is counter to the way the price has been performing. It is potentially profit-taking with prices at a three-month high.

Victor Thianpiriya

Concerns about Greece's negotiation with its lenders should continue to support a safe-haven bid for gold.

Victor Thianpiriya