Commodity Blog

Gold has reached its maximum level since late February today, following the slightly better-than-expected macroeconomic reports released globally on Thursday-Friday. Additionally, the Bloomberg’s survey showed an expectation of positive price dynamics for the next week.

Gold was not among the best performing assets during the first three days of the week, but it also failed to decline as dramatically as oil or some other commodities. Yesterday, after some of the fundamental reports hinted improving macroeconomic situation in the United States and Europe, gold managed to pick up and start a small uptrend. Today, Canada reported higher-than-forecast core CPI value for August, suggesting that inflation may accelerate globally, adding value to gold and silver — a popular hedge for rising prices.

15 out of 29 market analysts surveyed by Bloomberg were bullish towards gold for the upcoming trading week. Only 7 of the remaining 14 were bearish, while the other 7 were neutral. Monetary easing from the USA (QE3), Japan (additional asset-buying), ECB (unlimited bond-purchase) and China (infrastructure stimulus) are cited as the main bullish factors.

The Commitment of Traders report by CFTC will be released later today. The gold may benefit further if the report shows a significant increase of the speculative gold positions on the long-side.

Gold went up from $1,769.04 to $1,777.58 per troy ounce as of 16:49 GMT. It has reached a daily high of $1,787.35 today — the topmost level since February 29.

If you have any questions and comments on the commodities today, use the form below to reply.