Gold continues to rush to new records

The gold market continues to rush from record high to record high; however, high prices are likely to slow physical demand for gold, notes Barbara Lambrecht, commodities analyst at Commerzbank.

The gold market continues to rush higher and higher

“ETF investor interest has rekindled: Since early August, holdings of gold ETFs tracked by Bloomberg have risen almost continuously; from their lows in mid-May, they are now up nearly 4%.”

“However, we do not expect the upward trend in gold prices to continue at this pace, partly because we believe interest rate hopes are overblown. In addition, high prices are likely to slow physical demand for gold.”