“Gold has everything working against it,” Frances Hudson, a global thematic strategist at Standard Life Investments Ltd., said in the article. “The strongest influence is the strengthening dollar, and that goes against all commodities. So, you have a backdrop of falling commodity prices, a strong dollar and equities, potential disinflation and some countries already in deflation.”
Nevertheless, overseas demand, notably in Asia, may help keep a floor on losses as bargain hunters buy on the new lows. [India Regains Top Bullion Consumer Title, Supports Gold ETFs]
“With all the negativity, it seems that gold found a bottom,” Donald Selkin, the chief market strategist at New York-based National Securities Corp., said in the article. “Interest rates may not be raised as soon as people expect, and any signs of economic weakness could help gold. Also, these low prices might attract buying interest from central banks and jewelers.”
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Max Chen contributed to this article.