Gold has entered a consolidation phase. After the recovery to $1,720, the spot price has been unable to make further gains despite the weakening of the US Dollar, which generally represents a positive element for bullion. The spot price seems to have found a temporary equilibrium between $1,700 and $1,750, while investors are waiting for further direction.
The weakening of physical demand seen in the last few months in Asia has been compensated by the surge of investment demand in the USA and Europe, pulled up by dovish central bank decisions and expectations for further expansive monetary policies in the next 12 months.
