For now though, we are keeping the focus higher,” Barclays says. On the macro front, the market remains focused on the European debt situation, while a “flash” HSBC Purchasing Managers Index reading for China last week was above 50 for the first time since June, Barclays says.
As for investor flows, metal held by the 25 exchange-traded funds tracked by Barclays rose by 20.6 metric tons last week to 2,202, the bank says. Fundamental developments last week included news that some major Gold producers, such as Barrick, reported lower third-quarter gold output, while South Korea is considering adding more gold to reserves. “We continue to expect gold prices to be cushioned amid the seasonally strong period for demand,” Barclays says.
