A lot of investors are just buying because the price is going up, then trying to find reasons to explain it. |
A weak dollar has been the key supportive theme recently, while the surrounding geopolitical backdrop is adding to the support. |
After yesterday's weakness there could be some consolidation in the near term, but overall we continue to see upside potential in this market. |
Any price dip has been quite well supported by fund buying, and aggressive selling has been discouraged. The positive sentiment remains very strong and people are looking for further price gains. |
Given the way the market has been trading over the past few days, we are very likely to see prices testing another 25-year high again this week. |
Gold is probably going to remain in a range-bound trade today and should find good support above $565 against an environment of high oil prices. |
I think near-term volatility is going to persist. There is a general sense of lack of direction in the market. |
I think the current environment is very supportive for gold. There is still a considerable amount of fund buying interests on price dips. |
Impressive gains are seen in platinum and palladium, which are rising strongly above their recent ranges. |
Interest still exists even at such high prices. |
Overall we continue to see upside potential in this market. |
Price dynamics in gold next year will continue to be largely determined by speculative interest, backed by a myriad of justifications like inflationary risks, energy-price led economic slowdown, expectations of a US dollar correction, soaring physical demand, supply-side constraints, hopes of large scale central bank buying and so on. |
Prices are being driven up by hedge funds, which are buying platinum because its fundamentals are looking good. Platinum has been in deficit for the past six years, and it's expected it will be in deficit this year. |
Short term price trends will continue to largely depend on gold. |
Technical trends are looking very strong and people find it very risky to go short right now. I think that's why the rally has been continuing. |