New records – Commerzbank

After the decline earlier in the week, the price of gold rose again to near $2,430 per troy ounce, notes Barbara Lambrecht, commodities strategist at Commerzbank.

Gold will remain in demand

“The price of gold could not benefit from the turbulence at the beginning of the week. On the contrary, the price of gold was even caught in a downward pull earlier in the week. It fell well short of a record high and temporarily dipped below $2,400 a troy ounce despite heightened hopes for a rate cut.”

“However, as always, it’s all a matter of perspective: looking at the performance since early July, Gold can safely be labeled a ‘safe haven’. Gold rose slightly and hit a new record on the way. We assume that gold will remain in demand against the backdrop of tensions in the Middle East and therefore the price will remain well supported.”

“Upcoming CFTC data should be interesting for Gold as well. After all, the price of gold also fell sharply earlier in the week, which may have been accompanied by a reduction in speculative long positions. This would support the idea that gold was affected by the forced selling to generate liquidity to offset losses in other investments and meet margin calls.”