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Below the Quote on Gold by Sandip Raichura, CEO – Retail Broking & Distribution and Director at PL Capital

"Gold has now reached our second target of USD 4200 (USD 3700 Prior Target from May 2024) much faster than anticipated. China’s continued buying, which was anticipated to be weaker in September but turned out to be wrong, has reignited confidence on the yellow metal and its long term trajectory. ETF and other emerging market reserve bank buying continues unabated. Anticipation of a global (uncertain) downturn , increased trade conflicts esp China US, the US Govt shutdown, the continuing war between Russia and Ukraine and of course, potential Fed actions are all adding fuel to the fire.

Whether this is a temporary bubble or a longer term fundamental shift in the international monetary order is difficult to ascertain hence its important to keep in mind that corrections may happen at any stage in what could be the start of a historical move in the metal. We continue to advise a 5% allocation at the minimum to the metal even at current prices and believe that unless USD 3950 is violated , we are headed towards 4800 USD / Oz in the near term. A move below 3950 would violate the near term bullish view seriously and profit booking may emerge.

Recent survey data from the World Gold Council supports the bullish view with 95% of surveyed central banks expected to increase global gold holdings in the next 12 months, with none anticipating a decrease. 43% of surveyed central banks plan to increase their own gold holdings, the highest level since the survey began in 2018. None of the central banks in the survey plan to reduce their gold holdings."

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