Market wants gold price to climb even higher — Commerzbank
(Kitco News) The market wants to see gold go even higher, says Commerzbank, noting that all the price dips are continually being bought, including the one on Friday. “Today’s renewed rise shows that price falls such as that on Friday are still being viewed as buying opportunities and that the market wants the price to climb even further,” writes Commerzbank analyst Carsten Fritsch. There are “plenty” of drivers that could take gold higher. “The number of new corona cases is still soaring at a record rate, both worldwide and in the U.S. This increases the potential for stock market corrections … In the U.S., it remains to be seen to what extent the new wave of corona infections that has been running rampant there since the end of June will negatively affect the upcoming data. This is likely to prompt further action on the part of the government and central bank,” says Fritsch. Gold in the USD-terms is still about $100 off its all-time record high despite breaking all-time highs in other major currencies this year.