![]() ![]() While institutional investors have fled the gold market, Shah said retail investors are stepping in to buy the physical. The latest data from the Commodity Futures Trading Commission shows that bearish speculative positioning in the gold market is at its highest level in four years, which has weighed on paper markets. Shah said that he suspects the growing divergence between the physical market and the paper market is the reason why gold has performed well in the current environment. ![]() "If you are a nondollar gold investor, then gold prices are near record highs." "I know some people have been disappointed with gold, asking why prices aren't higher given where inflation is but against this setup, gold is doing pretty well," he said. dollar's rally to a 20-year high, gold prices should be down 21% this year. Shah said that according to his modeling, given how far bond yields have risen this year and the U.S. This week, the precious metal has seen a short-covering rally pushing prices back above $1,700, cutting the loss to 6% year-to-date. ![]() Last week, when gold prices dropped to a two-year low, the market was down roughly 12% since the start of the year. In a recent interview with Kitco News, Nitesh Shah, head of commodity research at WisdomTree, said that although gold has been in a downtrend through most of 2022, the precious metal is holding up relatively well. dollar has created significant headwinds for gold, there is no doubt it remains an essential hedge for investors, according to one commodity analyst. (Kitco News) - Although rising bond yields and an extraordinary rally in the U.S. Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. ![]()
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