Commodity Update; Gold – 18 May 2015

Gold gains ground on economic uncertainty and global bond sell off

After spending much of April under pressure, spot gold has embarked upon a strong recovery so far throughout May.

The key drivers behind gold’s strength has been an increasing level of economic uncertainty as developed market consumers have largely failed to deliver the boost in spending that was anticipated in the aftermath of last year’s oil price collapse.

This has meant several consecutive months of disappointing consumption figures which have […]

Commodity Update; Gold – 12 April 2015

Gold recovers on uncertainties over economic growth & Greece; division emerges among US rate setters

Gold has risen sharply since our last update as investors were left to digest a shockingly poor US payrolls report for March, which has now left many questioning the Federal Reserve’s likely resolve to begin raising rates this summer.

Interestingly enough the most recent round of FOMC meeting minutes, which were released last week, highlighted a deep division between […]

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Commodity Update; Gold – 24 March 2015

Gold rebounds as Federal Reserve revises economic projections lower

Since our last update concerns over Greece have become less pertinent than in the immediate aftermath of January’s elections while, for the most part, economic data in the UK, the US and Europe has remained largely positive.

This has diminished the need for catastrophe risk hedges among investors and gold has subsequently […]

Commodity Update, Gold – 09 February 2015

Grexit risks are rising, which should be supportive for gold over the coming days and weeks

After failing to sustain a break above the £1305 level in the wake of Greek elections in late January, gold has now retreated to below $1240, driven by a business as usual approach in Europe and strong payrolls numbers which emerged from the US late last week.

So far, markets have largely shrugged off the election of a radical […]

Commodity Update, Gold – 26 January 2015

Gold reaches four month high on European uncertainties

Spot gold rallied throughout much of last week as markets increased bets that the ECB would step up its efforts to stave off deflation with its own QE program. The move in the precious metal also reflected increasing unease over the Greek election at the weekend, as the SYRIZA party’s lead continued to widen in the opinion polls.

This saw spot gold break through the $1300 mark for the first time since August as investor concerns […]