Strategist: Gold may have a short-term pullback, but the long-term will continue to shine

Sina Financial News Pictet Wealth Management coin strategist Luc Luyet said that gold prices may fall back in the short term after the recent big pump, but will not lose luster in the long run. Gold may be vulnerable to deteriorating jewellery demand, Central Bank purchases, and high opportunity costs. However, he said any price pullback could find support around $2,100-$2,200 an ounce, given the long behind the pump of gold. Gold remains attractive in the long term, as central banks appear to continue to ramp up purchases. He said Pictet’s current estimate of US$2,350 an ounce for gold over the next 12 months is a bit timid compared to the current gold price, and could be revised upwards once demand in Asia becomes clearer.