Commodities Weekly: Gold Still Bullish Amidst Trade WarKehinde LAWAL
The ongoing trade turmoil and its implications for global growth is helping to boost precious metals. The energy sector is struggling however, while agricultural commodities have taken a hit following the latest USDA WASDE report.
Speculative investors boosted net long GOLD positions to the highest since September 2016, according to the latest data as at August 6 from CFTC. Gold soared the most in seven weeks last week amid falling global yields, global recession fears and potential currency turmoil. The metal was given an additional lift after Trump said Friday the proposed US-China trade negotiations scheduled for next month could be canceled. Exchange-traded funds (ETFs) had increased their physical holdings of gold for a 10th straight day, Bloomberg reported yesterday.
Gold has extended the gains into this week, hitting the highest level versus the greenback since April 2013. Gold is rising toward the 61.8% Fibonacci retracement of the 2011-2015 drop at 1,587.
Gold Monthly Chart