Great Basin Gold Ltd. (fka GBGLF)

[goldenpolarbear]

For the past three months, gold traded in a range of $1,310/oz-$1,370/oz. In the early hours of October 4, prices started consolidating near the lower end of the range. This was driven by slightly better-than-expected economic news in the US and recent bullish commentary by some of the Fed’s FOMC members. The media also reported that the ECB may look to scale back its €10 billion monthly bond purchase program.

A fall in demand can be seen from the fact that in the first nine months of 2016, imports slumped by 50 percent from a year ago to 268.9 tonnes, according to GFMS -a consultancy, data report.

According to the World Gold Council, consumers and investors may wait for prices to decline further, as many have been waiting for a price pull-back before entering the market. The third quarter of 2015 served as a good example when a 7 percent decline in the gold price triggered a sharp increase in demand for jewellery and bars and coins.

The price correction also comes at a good time for consumers. With a good monsoon, the upcoming wedding season and Diwali and Dhanteras festivals, demand could pick up after a subdued activity year-to-date.

http://www.firstpost.com/business/tumbling-gold-prices-may-see-demand-pick-up-festival-season-all-set-to-sparkle-3038102.html