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 Gold
prices are set to witness temporary profit taking but demand for gold
is set to climb further due to global monetary policy, strong demand
from emerging market countries and the high degree of uncertainly surrounding hte
sovereing debt problems, according to Bank Sarasin. In its Global View
Investment Outlook for the fourth quarter of 2011, the bank advises
every fall in price should be used as a buying opportunity by investors.
Gold
will continue to stay strong due to a lack of alternative havens for
investors operating in a slowing global economy, according to a Reuters
report quoting top performing commodity fund managers.
Gold prices
have gained 17% so far this year having hit a record $1920 an ounce in
early September before sharply correcting downwards. Meanwhile, on
Monday Gold pries have gained on positive developments with respect ot
Eurozone crisis with US gold futures December climbing 1.1% to $1654 an
ounce while spot gold has risen 1% to $1653.69 an ounce. Some analysts
expect gold to trade in $1,596-$1,677 range on Monday.
Gold is
well-supported by festival and wedding season demand in India while
premium on gold bars in Hong Kong remained around $3 an ounce as
physical stockpiles are at low levels.
Source: Commodity Online
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