Commerzbank: ‘Limited Additional Downside Potential For The Gold Price’

Washington (May 16)  Treasury yields, with technical-chart selling accelerating the move. “We see only limited additional downside potential for gold,” Commerzbank says. Speculators in the futures market have already trimmed their net-bullish positioning since summer, so this form of selling pressure should abate, the bank says. “Meanwhile, the low price level should stimulate physical buying interest,” Commerzbank continues. “The geopolitical tensions in the Middle East (violent protests in Gaza, uncertainty over the Iranian nuclear agreement) point to solid demand for gold as a safe haven, as does the Korea conflict that is flaring up again.” North Korea canceled a high-level summit with South Korea and there is now uncertainty on whether a planned summit between the leaders of the U.S. and North Korea next month will occur.

KitcoNews