By Paul Ploumis 22 Sep 2015 Last updated at 03:42:02 GMT
(Kitco News) - Gold seemingly is being viewed more favorably by investors lately even though it lost some ground Monday, says HSBC.
“It has managed to hold above and build on gains over $1,100/oz and in non-USD terms, it is back above EUR1,000/oz,” the bank says.
“The recovery in oil prices, which … if sustained, may lend additional support to gold. Chinese demand, as indicated by persistent Shanghai premiums, implies decent levels of imports of gold into China. This is offsetting the slowdown in Indian demand. Retail demand for gold and silver coins is also strong. On the negative side, we are unsure about central-bank demand, at least at the moment.”
Recently lower oil prices may limit the Russian central bank’s ability to buy gold for its forex reserves, HSBC says.
Also, China’s and other emerging-market nations’ forex reserves are down, which may curb central-bank gold purchases, the bank adds.
Courtesy: Kitco News