Gold, silver, platinum and palladium rallied strongly together with most other commodity “hard assets.” Net long gold and silver speculative futures positions have rebounded strongly, but as of last Tuesday (most recent CFTC data), remain well below previous highs, indicating scope for further gains.
Precious metals could also benefit from an official Spanish bailout, as this would unleash potential “unlimited” ECB bond buying.
German business sentiment on Tuesday will provide an indication of Germany’s economic health, while the likely weakness in Eurozone manufacturing data will be in evidence toward the end of the week. Meanwhile, investors will be keeping an ear to the ground for signals of a Spanish bailout request, which is likely to benefit cyclical assets, as it has the potential to unleash “unlimited” ECB bond buying.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
