Following a fall at the start of the week, the price of gold has now risen to almost $2,430 per troy ounce, notes Barbara Lambrecht, commodity strategist at Commerzbank.
Gold will continue to be 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 dragged lower at the start of the week. It moved away considerably from its all-time high and temporarily fell below $2,400 per troy ounce despite growing hopes for a rate cut.”
“However, as always, it is all a matter of perspective: Looking at the development since the beginning of July, gold can certainly be labelled a ‘safe haven’. Gold has risen slightly and, along the way, reached a new all-time high. We assume that gold will remain in demand against the backdrop of tensions in the Middle East and therefore 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 hit by forced selling to generate liquidity and offset losses in other investments and meet margin calls.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
