market talk

A gold price above $1,700/oz since early February has
been matched with a steady pullback from price-sensitive physical buyers, says
Standard Bank. However, interest from this segment of the market may re-emerge
after the latest selloff, it adds. These buyers are likely to adjust to the
elevated price range and "where this segment of the market saw gold above
$1,700/oz as too expensive, these expectations may adapt and this level may be
seen as a buying opportunity." Notes, however, that Feb-Jun is traditionally
seasonally weak for physical demand, so strong support may hold only near
$1,650/oz. Spot gold +$10.49 at $1,707.25/oz.