If US growth slows further in the coming months, expectations of further quantitative easing will likely continue to rise, driving the gold price up with it.
As Spanish CDS levels hit record levels, a balancing factor in the nearterm, is the risk of further Euro weakness if Europe does not quickly find a solution to its spreading sovereign/banking crisis. Ultimately, if US growth slows and further QE is implemented, gold should benefit.
In the week ahead on the data front, Eurozone Q1 GDP will be the highlight, along with retail sales early in the week. It will also be interesting to gauge the Eurozone economic weakness on Germany via industrial production data.
However, the key for commodities markets will be a raft of Chinese data scheduled for release at the back-end of the week, including CPI, industrial production and export figures.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
