(Kitco News) - Commerzbank has sent out a research note covering gold and silver. The German bank says that there could be some renewed upside for the yellow metal. Analysts at the bank however are not too positive about silver.
"After four consecutive weeks of outflows from the gold ETFs tracked by Bloomberg, inflows (of just short of four tons) were registered on balance again last week. Speculative financial investors have also seemed more open to gold of late, expanding their net long positions by 40% to 61,000 contracts in the week to 24 May, according to the CFTC's statistics. If this turns out to be more than just a flash in the pan, gold is likely to be lent buoyancy from this side."
The bank added, "Gold should be in demand as a store of value given that the Eurozone inflation data due to be published tomorrow are likely to show a renewed surge in the inflation rate to a record high.".
When walking about silver it said "Whereas speculative financial investors are viewing gold positively again, they remain skeptical towards silver: the CFTC's statistics show that positioning was net short for the first time in almost three years in the week to 24 May.". The German bank added "Speculative financial investors have sold around 6,680 tons of silver via the futures market in the last six CFTC reporting weeks. This headwind clearly proved too much for silver, with the result that the price plunged by 13% during this period. We believe it has the potential to recover now, however."
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| Hedge funds turn bullish on gold but remain heavily bearish on silver |
