“We got to the point where the year-to-date performance was zero, and from a risk perspective people started to recognize that this was somewhere with lower risk compared to other asset classes,” LGT Capital Management analyst Bayram Dincer said in a Reuters report.
“Yesterday, gold defied a stronger dollar, weaker equities, and another raft of negative EU headlines (to rise). It felt like the gold market of yesteryears,” added UBS in the story. “To see a return of gold reacting positively to macro stresses is indeed refreshing, but it is still far too early to make any firm conclusions from here that gold has indeed turned the corner. Momentum will be key, and follow-through buying will have to kick in to encourage investors to jump in.”
Edward Meir, INTL FCStone strategist, in a MarketWatch report said many commodity complexes are “severely oversold, and nowhere is this more evident than in silver.”
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD and SLV.