Gold Could Move Higher Towards Year-End - BarCap

Barclays Capital says the recent range-trade in gold
is within the context of a greater uptrend. "Indeed, the macro picture remains
conducive for further price gains next year, given the negative real interest
rates and fears over inflationary pressures"; the house adds "we expect a move
higher in range toward the year-end and would look to buy dips toward $1,665/oz
against the $1,600/oz area." The house's upside target in the yellow metal is
at $1,803/oz and then at $1,840/oz. It notes that while physical demand has
responded to lower prices, it has failed to provide a solid floor. It also
notes that investment demand has strengthened with holdings in exchange-traded
products close to record levels. Spot gold is at $1,663.90/oz, down $1.40 from
its previous close.