Gold, Little Changed, May Rise as Price Slump Attracts Buyers
by Nicholas Larkin and Pham-Duy Nguyen
July 28 (Bloomberg) — Gold, little changed in New York, may gain as the lowest prices in almost three months spur demand.
Futures yesterday fell the most in more than three weeks, dropping as low as $1,160.80 an ounce, as a rally in global equities eroded demand for bullion as an alternative investment. Physical demand for gold from buyers in India, China and the wider Asian region was “very visible” as prices declined this week, UBS AG said today.
“From a risk-reward perspective, this level presents a buying opportunity,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. . . .
Yesterday and July 26 were the UBS sales desk’s strongest two days since January for selling to India by volume, analyst Edel Tully said today in an e-mailed report.
“The current decline in the gold price is probably only short-lived,” Eugen Weinberg, the head of commodity research with Commerzbank AG, wrote in a report yesterday. “There are some religious holidays from the end of August” in India, the world’s largest gold consumer, which may propel demand, he said.
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