Gold continues to find support on price dips towards $1,240

Gold continues to find support on price dips towards $1,240. Our view remains unchanged - dips are likely to be bought on the back of increased seasonal demand, low real interest rates and continued growth of global liquidity. After a slight pull-back in physical demand when gold moved towards $1,260 last week (and even some scrap selling), physical demand is positive
again and we believe supporting the metal.

Gold support is at $1,240 and $1,237. Resistance is at $1,254 and $1,260.