Gold is finally able to hold its own again and has risen slightly to $1,845. Economists at Commerzbank expect the yellow metal to trade comfortably above the $1,800 level.
Speculative financial investors retreated on a grand scale from gold
“Gold was unable to resist the downward pull of cyclical commodities on Friday and likewise fell. The lower price level generated buying interest, however: at over 10 tons, the gold ETFs tracked by Bloomberg registered their biggest daily inflow since mid-April on Friday.”
“The renewed buying interest that is repeatedly seen at prices of between $1,800 and $1,850 is likely in our view to prevent gold from dropping lastingly or noticeably below the $1,800 mark.”
“According to the CFTC’s statistics, net long positions were slashed by 36% to just shy of 37,000 contracts in the week to 14 June. Speculative financial investors probably played a major part in the slide in the gold price during the period under review, in other words.”
See – Gold Price Forecast: Hedging demand amidst market volatility to push XAUUSD higher – Deutsche Bank