ANALYSIS-Inflation fears may push gold back to $1,000/oz
The Indian market, accounting for 20 percent of world demand, is likely to remain sluggish, Briggs said. "Gold at the moment just doesn't seem to have the momentum to do it."
"I'm sure $1,000 is possible but we need to be getting into new territory on the dollar and we're not," Briggs added. His comments were echoed by fellow analysts.
U.S. investment bank Goldman Sachs (GS.N: Quote, Profile, Research) economists expect the dollar to remain weak, but they expect that over a 12-month period it will begin to strengthen as the U.S. economy recovers.
On the back of that, Goldman Sachs said it lowered its 3-, 6- and 12-month forward price forecasts for gold to $860, $840 and $800 an ounce respectively.
Record high oil prices, which boosted gold this year, could continue to offer support, as they higlight the dangers of inflation and put pressure on global economies.
"If (high) oil slows the economy to the point where we are in a low interest rate environment for the dollar, that could be good for gold," said Michael Lewis, global head of commodities at Deutsche Bank. (Additonal reporting by Jan Harvey, Editing by Peter Blackburn)
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