Gold Price Forecast: XAU/USD could fall, weak imports to confirm low buying interest in China – Commerzbank

Gold price climbed to a nine-month high of $1,935 on Thursday. Economists at Commerzbank note that Gold demand in China decreased, which could drag the yellow metal down. 

Short-term investors more and more optimistic for Gold

“A troy ounce of Gold costs more than $1,900 again – more than at any time in nearly nine months. Physical demand in China, the largest consumer market, has not been the driver so far, as low Chinese net imports from Hong Kong and Switzerland are likely to confirm. 

“It is above all speculative financial investors who have been expanding their net long positions. A setback could be looming if they were forced to adjust their expectations with regard to the Fed’s policy.”