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Gold’s role as a strategic asset! Global Head of Research, World Gold Council Juan Carlos Artigas focussed on the ongoing catastrophes and the sentiment of geopolitics. He said, as the world’s attention has shifted to the crisis in Ukraine, we have received a lot of queries from investors about the effects of the recent events on gold’s performance in the short, medium and long term. Taking a step back, we believe that geopolitical events in isolation are neither the only nor the main reason why investors should own gold. Gold’s role as a strategic asset is linked to its broad contribution to returns, diversification, liquidity and positive portfolio impact. However, events like these represent a clear example of why gold is such an effective and well-established hedge against expected and unexpected market risks. As Russian troops entered Ukraine on February 24, morning GMT, the gold price surged to an intra-day high of US$1,974/oz and while it has given up most of Thursday’s gain...

  Gold and Silver Sentiment to Rise Sharply  ABC Bullion Market Update views a gold and silver sentiment to rise sharply in the coming months! In the Precious Metals Commentary, the bullion said, gold continues its strong recovery, but hit the resistance discussed in last week’s commentary (…Resistance in gold should come in at US$1888-1910…) with gold making a high so far at US$1896. There is distinct resistance at the US$1908 level. The Dollar Index is a big factor behind gold’s move as correlations between gold and Treasury-Inflation Linked bond yields (TIPS) weaken relative to early 2020. The DXY’s move to 89.73 takes it very close to the 50% retracement of the move from the 2011 lows to the 2017 high at 88.20, and along with medium-term target to 89.90 and 89.60 level, there is the suggestion that the recent move downwards in the Dollar index may pause soon.  There are signs that non-commercials longs are tentatively trying to increase their exposure to the DXY from ...

  Report on Global gold-backed ETFs published A popular gateway to the gold market!   The World Gold Council (WGC) published, Global gold-backed ETFs: A popular gateway to the gold market, report & said, “Recently, gold has become globally accepted as a strategic asset amidst a high-risk and low-rate environment spurring investment demand and the expansion of the gold-ETF market.” The increased quantity, size and location of gold ETFs have provided easier and more efficient access for investors allowing them to utilise many general advantages of ETFs.  While there are numerous ways for investors to own gold, such as bars, coins, derivatives, over-the-counter (OTC) instruments and gold stocks, many have embraced gold ETFs for qualities such as cost efficiency, transparency, and liquidity.   The growth and evolution of gold ETFs have already helped advance the broader gold market and are likely to continue to do so, providing additional support for the role of ...

The psychological resistance of (gold) USD 1,800 per ounce has been surpassed! At Precious Metals Watch, Georgette Boele, Precious Metal Strategist-ABNAmro observes, 1: Gold powers to an all-time high across a range of currencies, 2: Against the dollar, gold’s all-time high of USD 1,921 is now within reach, 3: The stars are aligned for gold prices to continue to rise, 4: Aggressive monetary policy easing, ultra-low interest rates, negative US real yields, fiscal. 5: stimulus and the technical outlook all support gold prices, 6: Nonetheless, positioning does remain extreme which could encourage volatility, 7: Our new gold price forecast for end 2020 is USD 1,900 per ounce (was USD 1,700 per ounce) & 8: Our new gold price forecast for end 2021 is USD 2,000 per ounce (was USD 1,800 per ounce). She inks about gold price record, we had expected another risk off wave in financial markets to support the US dollar and to result in temporary gold price weakness. Up to...