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Gold prices slipped below $1750/oz as physical demand has softened after the initial flurry in September while investment interest has gained traction with ETP flows remaining positive.

20 Nov 2011

LONDON (Commodity Online): COMEX prices have edged lower across the complex as the dollar has strengthened, equity markets diverged and fears of European contagion and uncertainty spreading to the world economy and financial markets, said Barclays Capital in a research note.

Gold prices slipped below $1750/oz as physical demand has softened after the initial flurry in September while investment interest has gained traction with ETP flows remaining positive.

The latest World Gold Council report for Q3 11 highlighted the strength of investment demand and stronger-than-expected central bank buying. Although physical demand should limit the downside amid the seasonal strength, investment demand will drive prices higher and Barclays retains positive view on prices amid the gold favourable backdrop.

Silver prices remain vulnerable in light of its weak supply and demand dynamics and soft investor interest while the latest Johnson Matthey report was broadly in line with our own expectations for both platinum and palladium to be in surplus this year and for palladium to swing into deficit next year.


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