The upside potential in the Gold market may have been largely exhausted after the new record high of $2,600 per troy ounce, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Gold posts another all-time high

“The price of Gold celebrated the Fed's large interest rate move with a new record high, touching $2,600 per troy ounce for the first time. After all, high prices also leave their mark on physical demand.”

“This was reflected, among other things, in the recent sharp fall in China's Gold imports, which fell to 44.6 tons in July, the lowest level in two years. Imports had already fallen sharply in the previous month.”

“New import quotas were allocated to Chinese banks in August, but buying interest is still unlikely to be too strong: jewelry demand is weakening, and only investment demand is intact. The fact that the Chinese central bank did not buy any Gold in August also suggests that Gold imports from Hong Kong will be low.”