Gold jewelry purchases as the festivals and wedding season approach
















Strong investor interest continues to buy gold prices. Demand for gold seems to have picked up across the board around the world. Many market participants had been waiting to see if gold prices would hold above USD1,000 on a sustained basis before they increased their gold purchases.

Prices have been holding above this level for several days now and demand for gold has been rising. Strong buying is reported to be coming from several funds as well as from some central banks. Buying also has surged in the futures and options markets. As of 17 September combined ETF gold holdings were 55.22 million ounces, up 1.3 million ounces from the end of August.

In India there has been an uptick in gold jewelry purchases as the festivals and wedding season approach. Some consumers in India have been buying gold recently in expectation that prices could be much higher later this year. All of this suggests a tightening physical market, which has the potential to push prices as high as USD1,050. A break above that could push prices toward USD1,200. Profit-taking could quickly emerge, however, pushing gold toward USD970.


Public Bank Gold Investment Account as at 23/09/09 3:50 PM

Selling PriceBuying Price
1 gramRM 115.8600RM 111.3200

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