Gold: New record highs – Commerzbank
Following the slump at the beginning of the week, the price of Gold has risen again to almost $2,430 per troy ounce, Commerzbank’s commodity strategist Barbara Lambrecht notes.
Gold is set to remain in demand
“The Gold price was unable to benefit from the turbulence at the start of the week. On the contrary, the Gold price was even caught up in a downward pull at the beginning of the week. It moved well away from its record high and temporarily fell back below the $2,400 per troy ounce mark despite increased rate cut hopes.”
“However, as always, it is all a matter of perspective: looking at the development since the beginning of July, Gold can certainly be labeled a ‘safe haven’. Gold has risen slightly and, on the way, reached a new record high. We assume that Gold will remain in demand against the backdrop of the Middle East tensions and hence the price will remain well supported.”
“The upcoming CFTC data should also be interesting for Gold. After all, the Gold price also fell sharply at the beginning of the week, which could have been accompanied by a reduction in speculative long positions. This would support the idea that Gold was affected by forced selling in order to generate liquidity to offset losses in other investments and to fulfill margin calls.”
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FXStreet Insights Team
FXStreet
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