THE WORLD'S MAJOR physical consumer markets continue Buying Gold on dips in the price, according to a global dealer's chief analyst.
Writing in Standard Bank's Commodities Daily, Walter de Wet says that “gold buying appetite” declined as prices rose back above $1400 per ounce at the start of December, but “selling activity” hasn't increased – making for a positive net demand.
“For a while we've been expecting the physical market to slowly adjust to the higher Gold Price,” de Wet writes. “As in the past, the adjustment [now] appears to be in progress, and the physical market seems to see a 'higher low' in the price as a gold buying opportunity.”
Similarly, the physical and especially Asian jewelry markets now need a 'higher high' to “entice selling and scrap flows to the market.”
Looking ahead, de Wet notes that India's wedding season (ending mid-Dec.) will be followed by Christmas shopping in the West, and then by China's busiest season for Buying Gold – the New Year starting on Feb. 3rd.
“We are growing in confidence that physical gold demand continues to prevail on dips,” he concludes.
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