Free Trial

Building On Last Week's Gains

GOLD

Gold is up a further 0.40% today, building on last week's gains of 1.92%, which was the strongest weekly performance for the metal since the start of March.

  • Gold is trading back through $1850, its highest levels since May 12th.
  • Concerns around the global growth backdrop, particularly last week with China growth downgrades and US business survey misses, has no doubt aided the safe haven appeal of the metal.
  • The fact that growth concerns are creeping into US sentiment, which has been a headwind for USD performance, has also likely aided the turnaround. The DXY was down 1.35% last week, its first drop in 7 weeks.
  • USD weakness has continued today (DXY off a further -0.44%).
  • US real yields are unlikely to have been a key driver of gold sentiment, but stability in yields has also likely helped at the margin.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.