Gold Doesn't Do Much, But Doesn't Fall

The gold price, after a U-shaped dip last night, has recovered to about US$1170/ounce. According to this Globe and Mail report, there's a fair bit of buying on dips - both real and planned. Including from Indians:

Gold's slight correction from record highs led to a pick-up in wholesale demand for the metal in major bullion consumer India, traders said.

Any further dips are likely to be met by strong buying, they added. “People are asking for $1,150, we have a few orders at that level,” said a dealer with a state-run bank in Mumbai.

The story ends with a forecast from Standard Chartered:

“The investment case for gold has become increasingly compelling, with central bank buying and a structural change in interest in gold as an investment at the retail level,” said Standard Chartered in a note.

The bank said although pockets of dollar strength would likely check gold's progress in the first half of next year, by the fourth quarter it is set to average $1,300 an ounce.

Yep, the old $1200 forecast has become too conservative...