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The gold price climbed above the $1,300 per troy ounce mark again



Commerzbank commodities research

Commerzbank commoditiesThe gold price climbed above the $1,300 per troy ounce mark again yesterday for the first time since early November and is continuing on its upward path this morning. What is more, it has also crossed the 200-day moving average, which could lead to technical follow-up buying. In euro terms the yellow precious metal is also gaining ground. On the Shanghai Gold Exchange it has risen to a three-month high as well. Among other things, it was poor retail sales figures in the US which contributed to yesterday’s price surge – they fell sharply in January, which also indicates that the US economy is losing momentum somewhat in the first quarter of 2014. The weaker US dollar likewise lent support to the gold price.

The gold ETFs tracked by Bloomberg recorded inflows of 7.4 tons yesterday, the second considerable daily inflow this year. This is solely attributable to the SPDR Gold Trust, the world’s largest gold ETF, and brings its holdings to above the 800 ton mark again for the first time since the end of December. The CFTC’s statistics this evening will reveal whether money managers have also jumped on this bandwagon and increased their bets on rising prices again of late. Silver is also being pulled upwards by gold, though gold has so far increased more strongly in price than silver since the start of the year. This has resulted in the gold/silver ratio climbing to 65 in the meantime, its highest level since last August.

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