Gold has potential to rise again, said Commerzbank in a commodities
research note. Commerzbank AG is the second-largest bank in Germany,
after Deutsche Bank.
According to the German bank, market participants viewed lower prices as a buying opportunity last week and also pointed out that the world’s largest gold exchange-traded fund, SPDR Gold Shares, had inflows of 6.3 metric tons over the past two trading days.
Analyst with Commerzbank said that, “We do not see any fundamental justification for the latest slump in prices given that real interest rates are still negative and the sovereign-debt crisis in the euro zone still remains unresolved.”
“As soon as speculative investors have completed the process of market adjustment, the gold price can be expected to resume its upswing. That said, it is too early as yet to proclaim any end of the correction phase. If gold could cross the $1,600 a troy ounce threshold, this would serve as an important signal,” Commerzbank concluded.
As of 8:21 a.m. EDT, spot gold was $5.25 softer at $1,587.6.
Source : NEW YORK (Commodity Online):
According to the German bank, market participants viewed lower prices as a buying opportunity last week and also pointed out that the world’s largest gold exchange-traded fund, SPDR Gold Shares, had inflows of 6.3 metric tons over the past two trading days.
Analyst with Commerzbank said that, “We do not see any fundamental justification for the latest slump in prices given that real interest rates are still negative and the sovereign-debt crisis in the euro zone still remains unresolved.”
“As soon as speculative investors have completed the process of market adjustment, the gold price can be expected to resume its upswing. That said, it is too early as yet to proclaim any end of the correction phase. If gold could cross the $1,600 a troy ounce threshold, this would serve as an important signal,” Commerzbank concluded.
As of 8:21 a.m. EDT, spot gold was $5.25 softer at $1,587.6.
Source : NEW YORK (Commodity Online):
