I've been told gold stocks have been oversold...any tips?
Gold has lost more than 15 percent in value since spiking to a record high at $1,030.80 on March 17, but the drop has attracted physical buying from jewellers.
In the physical sector, jewellery makers from India to Indonesia have snapped up purchases of bullion after it dived to lower levels, pushing up premiums for gold bars in Southeast Asia.
Dealers saw buying from India, the world's largest gold consumer, ahead of a religious festival in May, as well as demand from jewellers in Thailand, Vietnam and Indonesia, which is Southeast Asia's main buyer.
Expectations of further declines in the dollar over the coming three months should help support gold prices, said Suki Cooper, precious metals analyst at Barclays Capital.
"I don't think we will see a dramatic rally in gold unless a new catalyst emerges but the overall environment remains quite positive, and physical buying emerging on price dips should keep prices underpinned," she said.
