Gold price has climbed to $1,670 this morning. A breather could be followed by another correction if the USD appreciation continues after the US labour market report is published, economists at Commerzbank report.
Considerable selling of gold ETFs
“If the Purchasing Managers’ Index remains fairly stable as expected, markets will probably take a breather until the new US labour market data are published on Friday. If the figures cause the US dollar to appreciate further, metals prices are likely to continue falling.”
“ETF investors are continuing to withdraw from gold ETFs, which is exerting additional pressure on the gold price. The majority of speculative financial investors are now betting on a further price slide again.
“In July, when speculators were last positioned net short, a price recovery began shortly afterward. That said, for this to happen the USD would probably have to stop appreciating for the time being, as was the case a good two months ago.”
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