"From a long-term perspective, we remain bullish gold"Gold
has been on a steep downward move in recent weeks, currently approaching the $1,700 handle after fast and furious rises following the QE3 announcement.
According to Nomura strategists Saeed Amen and Geoffrey Kendrick, "the reduction in short-term spec positions suggests that the recent move lower in gold
has been as a related to short-term investors."
They add: "Longer-term investors have not been sellers and largely remain bullish, as suggest gold ETF holdings that remain close to record levels. From a long-term perspective, we remain bullish gold
, given the continuation of the globally low-rate environment and also because longer-term investors are still bullish."
On a short-term perspective, Nomura is keen to start buying on dips, "looking towards a $1,775 target, in particular, on a further liquidation of short-term specs," strategists note. "Without a further reduction in short-term specs, there is a risk of a continuation of the short-term unwind," they conclude.