CNBC reported that despite a history of strong seasonal demand from Asian consumers, gold is unlikely to break the $1,800 an ounce barrier.
As quoted in the market report:
India and China are collectively the world’s largest gold buyers, contributing 45 percent of total global consumption in the second-quarter of 2012, but the global economic slowdown has hit sales and undermined the stimulus-driven rally in bullion prices. Gold jumped to an 11-month high above $1,795 in October after the Fed’s stimulus plan but retreated after failing to break $1,800. It is down more than 3 percent for the month.