Setbacks for Gold
Positive US economic data and respective interest rate phantasies currently weigh on Gold. Even though the metal can defend the relatively high level (appreciation of 8.4 % in the first quarter), it was again unable to sustainably break resistance at 1,260 $/oz (200-day-moving-average). In the short term this increases the risk of further setback to 1,239 $/oz and then 1,220 $/oz. Among the most active buyers are still the institutional market participants, whereas private investors are cautious when it comes to purchases. Despite physical over supply, Gold will benefit from its role as safe haven in the course of the remaining year. Analysts of Thomson Reuters GFMS expect an average price of 1,259 $/oz in 2017. In their Gold Survey 2017, which was published on Friday, they emphasize on the one hand that support will come from political uncertainties in both the US and the EU. This should ensure that investor interest is being maintained. On the other hand, GFMS expects a recovery of Indian Gold demand, which decreased last year by about 38 %.