Goldhub blog

Money manager net longs fell sharply last week as gold volatility increased

Gold breaks 50-day moving average and key support level

Gold skew is at all-time 'cheapness' highlighting bullish sentiment

Gold rallied on Friday following the LBMA fix which left the fix price flat on the week and XAU higher (XAU +2%, LBMA -0.1%) as yields fell following the Fed rate cut which left the market thinking the ‘organic growth’ Powell discussed could represent future QE.

Busy news and economic calendar could drive gold prices this week

Gold: the most effective commodity investment

Today, we released a report on gold and commodities, covering key themes including:

• Why gold is not a typical commodity
• Why gold is under-represented in commodity indices (ranging from 3% to 12%) despite its clear differentiating benefits
• Why gold is the most effective commodity investment

Gold trading volumes continue to rise

Gold futures net longs at all-time highs

Asian gold-backed ETF flows have reversed, moving positive on the year

Gold was higher last week (XAU +1.1%, LBMA +1.2%), as markets were volatile, and the US 2/10 curve turned negative, which has historically often preceded a recession.

COMEX net longs near all-time highs as gold is at all-time highs in many currencies

Gold was higher by 4% last week (XAU +3.9%, LBMA +3.9%), as US/China trade negotiations hit a snag, the US dollar fell, and rates continued to fall. Gold prices are at all-time highs in over 20 countries, having rallied 8% in the past month and 17% this year in US dollars.

Stronger than expected inflation numbers and dovish Fed comments drove gold higher last week

 Week ending 12 July 2019

Gold fell last week following the strong US Job's report

Gold prices have increased with the amount of global net negative-yielding debt

Gold rose over 4% last week, its largest move in over 3 years

Gold had its largest weekly move to the upside since April 2016 (LBMA 3.4%, XAU 4.3%) continuing its move higher for a fifth straight week–this was likely driven by the US dollar falling sharply (-1.4%) and the price of gold breaking out of the key technical resistance level of $1,365 (discussed in depth on Friday).

Gold breaks out of key multi-year resistance level