LONDON (Commodity Online): Barclays Capital said that the supportive influences remain in place for gold. Gold prices have kicked off the year slowly, reclaiming lost ground after testing their lowest levels since July at the end of last year.

“As we have highlighted previously, gold has had to overcome a number of barriers including dollar strength, which was compounded at the end of last year by having to tackle technical selling and the need for liquidity amid reduced risk appetite,” Barclays added.

“But in our view, gold’s key pillars of support remain intact; ranging from central-bank buying to negative real interest rates and rising longer-term inflationary pressures supporting investment demand,” Barclays concluded.

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