Commerzbank: Gold-price declines still used as 'buying opportunities'
(Kitco News) - Market participants appear to be using pullbacks in gold prices as "buying opportunities," said Commerzbank analyst Carsten Fritsch. After rising to $1,780 an ounce early Wednesday, spot metal fell back to around $1,760 but was holding there around there early Thursday. Gold’s reversal lower Wednesday – on a day when stocks plunged – could have been a sign of renewed "forced selling to generate liquidity," as has happened during other periods of risk aversion over the past three months, Fritsch said. "As compared with previous episodes, however, the price slide so far has been only moderate," he said. "What is more, it is noticeable that falls in the gold price are still being viewed by investors as buying opportunities." For instance, Fritsch pointed out, gold exchange-traded funds tracked by Bloomberg registered inflows of 13.5 metric tons yesterday, roughly half of which was attributable to SPDR Gold Trust. "We therefore regard the latest weakness in the gold price as temporary and envisage new highs in the near future," Fritsch said.