Gold price has dropped back to $1,750, its lowest level since the end of July. Strategists at Commerzbank highlight the issues of the yellow metal to see gains.
Gold fails to profit from robust demand
“The pronounced fall in the gold price during the course of the month is likely to have generated additional buying interest. Furthermore, stocks need to be replenished following months of subdued imports. It is doubtful whether the gold price will be able to capitalise on this, however.”
“The Chinese purchases are being offset by persistent outflows from the gold ETFs.”
“The prospect of further tightening of monetary policy and a firmer US dollar until at least the end of the year continues to weigh on the gold price trend.”