Strengths
The best performing precious metal for the week was palladium with a 3.42 percent gain. Citi forecasts a continued drop in diesel market share in Europe, while Russia’s largest palladium producer boasted of strong auto demand. Gold traders and analysts surveyed by Bloomberg are bullish for a ninth week, the longest run since March. Gold climbed higher this week after the dollar weakened following Federal Reserve minutes that showed lingering concerns over low inflation, reports Bloomberg. Worries over U. S. economic policy also pushed the yellow metal higher, after the nation’s top CEOs’ rupture with President Trump. Investors put $870 million into SPDR Gold in the second quarter, reports Bloomberg, bringing the fund’s assets to $34 billion. ‘Prospective risks are now rising and do not appear appropriately priced in,’ Bridgewater’s Ray Dalio said in a LinkedIn post. Dalio recommends that investors allocate 5 to 10 percent of their assets in gold, the article continues. Bond funds added $3.5 billion in a twenty-second week of inflows in the last week, reports Bloomberg, while precious metal portfolios attracted $500 million of new money. On the flipside, equity funds posted their biggest outflow in 10 weeks. One potential market moving event next week will be the Fed’s summit on August 24-26 in Jackson Hole.
This post was published at GoldSeek on 21 August 2017.
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