Without so many speculators gold price should recover, says Commerzbank
(Kitco News) The gold market should be able to recover after seeing a $100 drop last week, which was triggered by a rise in the U.S. dollar, according to Commerzbank. “The significant losses were triggered by the rising U.S. dollar, which apparently prompted speculative financial investors to cover net long positions they had previously entered,” writes Commerzbank commodity analyst Carsten Fritsch. However, with the macro environment remaining a positive one for the precious metals and without so many speculators out there anymore, gold price should see a rebound, Fritsch notes. “Now that speculators have withdrawn from the market for the most part, prices should recover again – after all, the environment for precious metals remains positive,” the analyst writes. The above will depend on the U.S. dollar strength running out of steam. “And there are good reasons why this should happen, in our opinion,” Fritsch adds.