Forex Flash: Gold likely to trade with an upward bias short term - Nomura

FXstreet.com (Barcelona) - Gold remains subject to two opposing forces, according to Saeed Amen and Geoffrey Kendrick, FX strategist at Nomura: "The liquidation of gold ETF holdings on the downside and support from physical demand, particularly from Asia, supporting the price" the Nomura strategists said.

Saeed and Geoffrey add: "While we think gold is likely to rise, it needs a turn from gold ETF holdings, for this to be a significant move. So far we have yet to see any sort of turn in gold ETF holdings. We think gold is still likely to trade with an upward bias in the short term, but we think that gold ETF holdings need to turn higher for the move to accelerate."