Gold remains out-of-favor as outflows reach 8-week high. Investors withdrew US$239mn from physically-backed gold ETPs last week, as the gold price reached a 26-month low. While there are reports of strong physical demand in countries such as India, futures market positioning remains bearish.
Key events to watch this week: The widening divide in growth between the US and the Eurozone is again likely to be highlighted this week, with Eurozone manufacturing indicators expected to show the sector firmly in contraction territory. In contrast, US Q1 GDP is expected to show the world’s largest economy grew by 3% annualized over the period. As highlighted in the G20 communique, continued policy uncertainty and fiscal sustainability remain key constraints to growth and this divide is unlikely to be bridged in the foreseeable future.
ETFS Physical Silver Shares (NYSEArca: SIVR)
