Quotes from Bank of Cyprus:
-Gold prices reached their low of $1,142 in November while now are around the $1,200 mark, after reaching a peak of $1,392 in March. Gold is mainly perceived as an inflation hedge. The FED looking ahead in increasing interest rates later on this year and as expectations are running high for the US economy overall, as the US dollar is gaining versus othermajor currencies, these are factors to limit any upside move on gold.
-Demand dynamics are most likely to soften from China but we cannot say the same from India. Nevertheless, we see no apparent factors that will pull gold's price on the upside. As the macroeconomic outlook from the US and other major economies is getting more stable, gold's ‘safe haven bid' will fade away. We remain negative on gold with a negative bias.
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