Aside from key demand drivers like central bank buying, he highlighted differing sentiment in the west and east. ‘This is an interesting time. Right now the price has been impacted less so by the expectation of US rates and the US dollar, and more so by the geopolitical and overall outlook for investment in the Asian markets, the eastern markets. And that’s actually done a real shift in the overall sentiment amongst investors worldwide,’ Cavatoni said. He went on to explain that western investors generally tend to pile into gold when the metal’s price is high. Now, however, they’re standing on the sidelines waiting for interest rates to start coming back down. Conversely, eastern investors, who would normally rein in purchases when prices are higher, continue to buy. Cavatoni pointed to currency and property sector concerns in China as part of the reason this is happening. Overall, he sees more…
