into on approach of $1,450.
We maintain it will be difficult for gold to sustain a rally in an environment where investment demand via the ETFs is weak, and physical demand in Asia falls away on price rallies. That said , we would expect physical demand to pick up below $1,300, as it did around 15 October. Furthermore, US bond yields have decline d sharply since yesterday,
with the 10-year government bond trading at 2.49% this morning, down from 2.75% less than a week ago—lower bond yields are supportive for gold. This in our view, combined with physical demand that strengthens below $1,300, makes shorting gold even more risky when the price is below $1,300.
Gold support is at $1,305 and $1,283. Resistance is at $1,330 and $1,346. Silver support is at $21.20 and $21.01, resistance is at $22.10 and $22.20.