SWOT Analysis: Deutsche Bank Says Investors Should Prepare for Flight to Gold

Jon Economy

Strengths
The best-performing precious metal for the week was palladium, up 4.18 percent. Bloomberg reports that rising automobile demand may be sending palladium futures toward the steepest rally since April 20. Bloomberg’s weekly poll of traders and analysts show the trending heading toward bullishness, with 10 bullish, five bearish and four neutral. Analysts point to concerns over terrorism, probes into President Donald Trump’s links to Russia and doubts that the Federal Reserve will raise rates in June, as factors that may spur investors to choose gold. China’s gold demand in 2017 is still the strongest in four years, reports Bloomberg. Although higher prices have deterred some buyers, dropping gold purchases from 15-month highs, the World Gold Council (WGC) sees demand growing to 900 to 1,000 metric tons for the full year. Weaknesses
The worst-performing metal for the week was gold, albeit still positive with a gain of 0.91 percent.

This post was published at GoldSeek on 30 May 2017.