Yingxi Yu Gold Quotations

Gold is probably going to remain in a range-bound trade today and should find good support above $565 against an environment of high oil prices.

Price dynamics in gold next year will continue to be largely determined by speculative interest, backed by a myriad of justifications like inflationary risks, energy-price led economic slowdown, expectations of a US dollar correction, soaring physical demand, supply-side constraints, hopes of large scale central bank buying and so on.

With a lack of fresh catalysts to trigger a significant move in either direction, we expect gold to remain in its consolidation mood over the near term.

The downside appears quite limited at present...There are factors pointing to further gains in the gold market in the short term.

This has the potential to push prices higher. Gold has always had a traditional role as an asset which holds its value in times of uncertainty.