Still see healthy demand for gold in the physical market

We still see healthy demand for gold in the physical market. At the same time, gold scrap sales have dried up. With the support for gold from the physical market in place (refer to Focus), there is growing resistance to a move lower in the gold price.

That said, we would not be surprised to see more gold liquidation from the investment front this week. We therefore still see short-term momentum as down.

Support is at $1,190 and $1,184. Resistance is at $1,206 and $1,218.