(Kitco News) – The gold market could struggle through the rest of the year as there is a lack of fundamental reasons to push prices higher, according to one Australian Bank.
It is difficult to be overly bullish on gold as there is no new catalyst that could dramatically drive prices higher, Macquarie precious metals analyst Matthew Turner told Kitco News on the sidelines of the London Bullion Market Association’s 2018 precious metals conference.
Turner explained gold embarked on a major rally in the early 2000s because of major shifts in demand. “Central banks started buying gold after being net sellers, investors were buying investment gold through newly launched exchange traded products, and the Chinese started to build its gold exchange,” he said.
“These were three major factors that fundamentally increased demand for gold,” he said. “Right now, we see the supply demand outlook as a little bit soggy. We just don’t know where the next big catalyst for gold is going to come from,” he said.
Turner added that his firm thinks that investment demand could continue to drive prices to around $1,300 an ounce, but the market will be unable to find any solid momentum in the current environment.
For the rest of this article: https://www.kitco.com/news/2018-11-06/-Soggy-Fundamentals-Will-Keep-A-Lid-On-Gold-Prices-Macquarie.html