Gold may rally on increased demand from Asia: analysts

With gold prices going through a correction lately, analysts said investors may consider entering the market to make mid- to long-term gains. According to gold analysts with Bank of Taiwan, the metal last week hovered near its six-month moving average, while price fluctuation was not as volatile as before. In the mid- to long-term, a rally in gold may be possible, on higher demands for the metal in Asia, especially India and China. Morgan Stanley, meanwhile, is optimistic about gold's mid- to long-term performance. The metal is resilient and value-retaining, making it an attractive commodity to invest in, Morgan Stanley said. The firm raised its target price of the precious metal to US$2,200 per ounce next year.

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