The agency Bloomberg published an interview with an analyst from the company State Street Global Advisors, in which he spoke about the restoration of the gold market and the prospects for the precious metal. In his opinion, it is still too early to fall into the euphoria about the rise in gold prices.
"The season has recently ended when the demand for gold is usually low. This period lasts for three summer months and is now over. But the Indian season of festivals is waiting for us. And there, in the near future, China will begin to celebrate the New Year by the lunar calendar Therefore, we are waiting for 8-9 months ahead when the demand for gold will be as high as possible ", - this point of view was expressed by the analyst.
According to the expert, the correction in the stock market also contributed to the strengthening of the value of the yellow precious metal. Some investors reduce their investments in the US dollar, but at the same time transfer their capital into gold. This trend has been observed over the past few months.
According to the analyst, the recent rise in gold prices in India is primarily due to the fact that jewelers and dealers have increased their stocks in anticipation of the season of weddings and festivals. It is at this time that the active trading of precious metals occurs in the country. But the situation can be darkened if the course of the Indian rupee weakens again, as a result of which the purchase of gold will become inaccessible to many Indians.
According to analysts, on the way to the price of $ 1,350 per ounce, gold has no major obstacles. The mark of $ 1,150 has established itself over the past five years as a solid foundation. In the next 6-12 months, we can observe the overcoming of the next resistance point.