Gold prices see a resurgence in demand after a November drop

This month's drop in gold prices has rekindled interest among purchasers who had been waiting for the market's extraordinary surge to fade. According to industry professionals and analysts, physical demand for gold has surged dramatically, especially since the severe price decrease in November.

Record highs and subsequent decline

In October, spot gold prices hit an all-time high of $2,790.15 per troy ounce. However, following the US election results, prices have fallen by about 4% this month. This downward trend has resulted in a shift in market attitude as buyers become more active.

Increased demand from private and institutional investors.

According to Robin Kolvenbach, co-CEO of Swiss refinery Argor-Heraeus, physical demand has increased significantly since October, with a considerable demand for minted products from private investors. Additionally, institutional investors have shown a more substantial interest in physical gold as production needs have increased.

Price-sensitive regions See an increase in demand.

In countries such as India, where customers are particularly price-sensitive, the recent drop in gold prices has increased demand. The head of a private gold-importing bank in Mumbai stated that Indian clients are now more satisfied with the price of roughly $2,620 per ounce. If prices remain constant, they expect the demand to continue in December.

Strategic investors take advantage of the price drop.

While demand in China and Southeast Asia is less strong, StoneX analyst Rhona O'Connell said some strategic investors are waiting for a market drop. The post-election price decline has allowed these investors to enter the market.

In conclusion, the recent drop in gold prices has increased demand from private and institutional investors. As market sentiment shifts, investors must monitor price movements and adjust their tactics accordingly.

Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.