Salient to Investors:

Gold traders are the most bullish since Aug. 24. ETP holdings account for almost a year of mine production.

Gold rose 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011. Gold is headed for a 12th straight annual gain, the longest winning streak in at least nine decades.

Daniel Briesemann at Commerzbank said Obama is a supporter of Bernanke so the ultra-loose monetary and fiscal policies by the Fed will continue.

Edel Tully at UBS said physical gold purchases in India will be stronger this quarter, but demand will decline for several weeks after the Diwali festival on Nov. 13, Tully said higher prices may curb demand,

Michael Widmer at Bank of America Merrill Lynch said it’s very difficult for cyclical commodities to rally only on liquidity. Widmer said you need real growth, and we are seeing a slowdown in growth – there are a few green shoots but you won’t get a strong price reaction until next year.

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