High price level likely to slow the physical demand for Gold – Commerzbank

The Gold market continues to rush from record high to record high; nevertheless, the high price level is likely to slow the physical demand for Gold, Commerzbank’s Commodity Analyst Barbara Lambrecht notes.

Gold market continues to rush higher and higher

“Interest from ETF investors has also awakened again: since the beginning of August, Gold ETF holdings tracked by Bloomberg have been rising almost continuously; since the low in mid-May, they have now increased by almost 4%.”

“Nevertheless, we do not expect the upward trend in the Gold price to continue at this pace, partly because we consider the interest rate hopes to be exaggerated. In addition, the high price level is likely to slow the physical demand for Gold.”