Deutsche Bank maintains bearish outlook for Gold
Frankfurt (Apr 5) Deutsche Bank is maintaining bearish outlook for gold. However, DB recognise that lower oil prices continue to pose risks to the US equity and credit market outlook.
"Not until these risks subside and the Fed embarks on a programme of monetary tightening do we expect to see a sustained move lower in the gold price,' the Bank said.
As a result, gold remains relatively supported into the second quarter but look for a new phase of gold price weakness to emerge as soon as the Fed starts to tighten monetary policy and as risks to the US High Yield sector subside.
"We expect evidence of these outcomes taking hold sometime during the third quarter of this year."