Reuters market analyst Clyde Russell says a repeat of last year's rally to the record high is unlikely to be repeated in the coming months without physical demand by Asian giants, China and India.
Clyde Russell writes:
"Gold analysts are generally bullish by nature and many have long-running forecasts that bullion is poised to rally through the $2,000 an ounce barrier, but the reality continues to disappoint.
"If analysts were looking for reasons why gold has failed to push on from its all-time high of $1,920.30 an ounce, the World Gold Council's third-quarter report is a good place to start.
"No doubt the gold bugs will point to the fact that third-quarter demand, at 1,084.6 tonnes, was up from the second quarter's 982.2 tonnes and was the first quarterly gain in a year.
"The increase was driven by a jump in demand from exchange-traded funds (ETFs) and from India, but even this wasn't enough to prevent an 11 percent decline from the third quarter of last year.
"The problem for any bullish gold view is that physical demand isn't supportive. ..."