“Gold has not been living up to its reputation as an inflation hedge and safe haven in times of crisis of late,” Analysts at Commerzbank Research noted in their latest Commodities Update published on Tuesday.
Additional quotes
“Although inflation rates in the US and Europe are higher than they have been for decades, and have been rising further recently, the gold price has been under selling pressure for weeks.”
“Even the growing concerns about a recession, as evidenced by sharp falls on the stock markets and an inverse yield curve, have not benefited gold.”
“On the contrary, its price even dipped below the $1,700 per troy ounce mark at the end of last week, the first time this has happened in eleven months. What is more, gold has chalked up weekly losses in five consecutive weeks, which has also not been seen in nearly four years.”
“During these five weeks, gold shed almost 9% of its value. More and more disappointed investors are throwing in the towel and jettisoning their gold investments, thereby exerting additional pressure on the price.”
“This is especially visible in the case of gold ETFs: within the past nearly four weeks, 95 tons of gold have been withdrawn from the ETFs tracked by Bloomberg.”
“That’s almost twice as much as the net outflows seen in the entire second quarter. Around two-thirds of the outflows were registered by the world’s largest gold ETF, the SPDR Gold Trust, which is primarily used as an investment vehicle by institutional investors.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD drops to 0.6350 as markets turn cautious on trade uncertainty
AUD/USD is falling back toward 0.6350 in Thursday's Asian trading amid fading optimism over a quick resolution to the US-China trade dispute. Meanwhile, a renewed US Dollar selling on looming trade uncertainty, concerning US, China and Japan could limit the pair's downside.
USD/JPY tumbles toward 142.50 amid US-Japan trade talks
USD/JPY closes in on 142.50, correcting sharply from over a one-week top set on Wednesday. Uncertainty over the US-Japan trade talks and the divergent BoJ-Fed policy expectations continue to offer a double-whammy to the pair amid a fresh bout of US Dollar selling.
Gold price bounces back above $3,350 on fading US-China trade deal optimism
Gold price regains positive traction abpve $3,350 in the Asian session on Thursday, snapping a two-day losing streak to the $3,260 area, or the weekly low touched the previous day. The optimism over a possible US-China trade deal fades quickly and revives demand for the safe-haven bullion.
Ethereum ETF sees boost as bulls target descending channel resistance
Ethereum gained 2% on Wednesday after US spot Ether ETFs recorded their largest inflows since February 4. However, the top altcoin could face a correction after experiencing a rejection at its 50-day Simple Moving Average.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.