Spot Gold – In addition to portfolio managers buying up gold as their preferred safe-haven trade, central bank purchases are expected to provide an additional level of support over the next couple of years.
Emerging market demand for gold should provide major support to what is an already very strong bullish trend. While overbought conditions have been in place for most of the summer, investors awaiting a major pullback might be disappointed.
Gold Short-term support lies at $1,525, followed by $1,475, while upside targets remain $1,650, with longer-term targets around $1,730.