Commerzbank: Gold Dip Limited as PBoC Continues Buying
Commerzbank analyst Carsten Fritsch notes gold's recent dip to $4,120/oz is limited due to continued PBoC buying, despite pressure from higher energy prices and Fed rate expectations.
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Gold fell to $4,120 per ounce following fresh Iranian attacks, which boosted TTF gas and oil prices. However, Commerzbank's Carsten Fritsch suggests the downside is limited because the People's Bank of China continues to increase its gold reserves.
The analyst also notes that Fed rate expectations remain a factor, but the ongoing central bank buying provides a floor. The price dip is seen as temporary given the sustained demand from the PBoC.
Source: FXStreet Forex News