Gold Price Analysis: XAUUSD to be in demand as store of value given record inflation in EU – Commerzbank

FXStreet Insights Team FXStreet

Gold has risen slightly to a good $1,860 at the start of the new week of trading. Economists at Commerzbank expect the yellow metal to remain resilient as eurozone inflation is set to hit a new record.

Gold to be lent buoyancy amid renewed interest from speculative financial investors

“After four consecutive weeks of outflows from the gold ETFs tracked by Bloomberg, inflows (of just short of four tons) were registered on balance again last week. Speculative financial investors have also seemed more open to gold of late, expanding their net long positions by 40% to 61,000 contracts in the week to 24 May, according to the CFTC’s statistics. If this turns out to be more than just a flash in the pan, gold is likely to be lent buoyancy from this side.”

“Gold should be in demand as a store of value given that the Eurozone inflation data due to be published tomorrow are likely to show a renewed surge in the inflation rate to a record high.”

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FXStreet Insights Team

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