Buying gold is more about market perception of price direction than the metal’s fundamentals, said Chris Brown, senior analyst at Morgans.
“I think [gold is] stuck in a trading range from about here up to $1,350 [an ounce]. I don’t think we’re going to see a breakout to the upside, I don’t think we’re going to see a collapse to the downside either,” Brown told Kitco News on the sidelines of the Noosa Mining & Exploration Investment Conference.
Brown noted that of all the metals, gold has seen the most volatility and investors should look into buying on the dip.