OUR EVENTS
IS GOLD’S DIRECTIONAL DOWNTURN EXPECTED TO RESUME?
Friday 24th May '13
Please find below details of our Macro Gold conference call taking place on Friday 24 May 2013 at 10:00-10:45 (GMT).
Viktor Nossek, Head of Research at Boost ETP, will be hosting this conference call.
Viktor Nossek, Head of Research at Boost ETP, will be hosting this conference call.
- Sentiment is shifting in favour of risky assets: is Gold’s directional downturn expected to resume? - The gold price downtrend started more than 1.5 years ago: it did not need the loss of safe haven status instigated by April’s price crash. Since then, recovery has been half-hearted and short-term opportunistic.
- Weakening demand drivers: physical buying by retail bargain hunters is overwhelmed by professionals selling out of Gold funds - Physical buying by retail throughout Q1 2013 was strong and gained momentum as the price crash triggered bargain hunters. However, at the same time investors pulled out of gold at an unprecedented rate: with 177 tonnes in outflows over the same period. The total bullion holdings in gold ETF funds fell by a record 7%.
- Fundamentals undermine Gold’s real and nominal valuations - With the US recovering, Europe restructuring and China rebalancing, the macro-backdrop is expected to continue to cut any sentiment rally on gold short.