Recent data points suggest professional speculators have been boosting short positions in gold. Money managers are still betting on further weakness in the gold market as many have increased net-short positions to a record for a fifth straight week. Analysts at Citigroup Global Markets argued that there isn’t a lot of demand for gold in a world where yields and equities are rising.

Looking For Macro Help

Basic consumer demand is an important buffer for price falls. As a result, Alexander argued that upside potential depends on continued uncertainty and risk hedging, predicting further price upside as a result. Looking ahead, rising prices could attract fresh retail investment in price-elastic regions, but upside momentum will be driven by external tensions.

“In 2013, a substantial amount of gold was a bought by local banks in China. Gold continued to drift lower through to the end of 2015 with professional and private investors continuing to migrate from the ETFs and COMEX positions, and gold’s role as a risk-averse asset was not really in demand over that period”, O’Connell adds,” according to Mining.com.

Trade wars, hard Brexit speculation and ongoing volatility in emerging markets could be factors that boost gold as 2018 winds to a close.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.