Juan Carlos Artigas, Global Head of Research-WGC explains those factors, behind gold’s March rally! He said at World Gold Council (WGC) that, Gold has reached continuous highs in March and is trading close to US$2,200/oz! Gold’s price increase of 6.5% m-t-d can, in part, be explained by a weaker USD, as well as higher risk and momentum…but other factors such as technicals and over-the-counter (OTC) activity likely accelerated the move!
Looking forward, a sustained rally could trigger further investment flows but gold remains sensitive towards bond yield volatility in the short term. A market searching for the trigger! The gold price has shot up since the end of February, with the LBMA Gold Price PM trading at US$2,180.45/oz as of 11 March – a 6.5% increase m-t-d. Gold has reached consecutive record highs six days in a row and flirted with US$2,200/oz last Friday (8 March) in intra-day trading.
Gold’s sharp increase has since caught the attention of market participants. The initial trigger was linked to a weak ISM print in the US on 1 March, 2 pushing bond yields and the US dollar down.
But that can only explain so much, so what’s behind gold’s move since? Our analysis, using a weekly version of our Gold Return Attribution Model (GRAM), indicates that gold’s performance can partly be explained by a few factors.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
