In a chat with ET Now, Amarsingh Deo, Head-Commodities & Currencies Research, Aditya Birla Money Limited gives his overview on gold.

ET Now: Gold is hovering around 1660. Do you think it is sustainable?

Amarsingh Deo: We have witnessed a sell off happening in base metals, energy and as well gold and silver. Sell off in gold because a lot of investors wanted to book profits in gold. This was one of the major reasons why a lot of liquidation was witnessed in gold prices. Gold did correct coming down to almost 1533. Spot gold has bounced back from there.

However, right now any pullback is being used as a shorting opportunity by the investors because still there is a lot of nervousness in the markets. Slightly move away from risk asset classes and further going if we look at it COMEX also increase the margins for gold, silver in particular. So, that also had an impact.