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 More Quotes by Victor Thianpiriya More Quotes From 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 company-news 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 company-news 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 company-news 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 company-news 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 company-news 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 company-news 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 company-news Concerns about Greece's negotiation with its lenders should continue to support a safe-haven bid for gold. Victor Thianpiriya company-news
