Gold breaches $4,400 on ETF inflows, but Commerzbank stays sceptical
Gold pushed above USD 4,400 per ounce despite a sharp oil rally, as ETF inflows continued. Commerzbank’s Carsten Fritsch flags a sceptical outlook, with Fed rate expectations only modestly higher after soft US labour data.
Gold prices broke above the USD 4,400 mark, defying a sharp rally in oil and drawing support from steady ETF inflows. The move came amid only a modest uptick in Federal Reserve rate expectations following weaker-than-expected US labour-market data.
Commerzbank analyst Carsten Fritsch noted the break higher but maintained a sceptical view. The bank highlighted that the gold rally appears stretched, and the backdrop of still-elevated real yields could challenge further gains without a meaningful shift in Fed policy expectations.
ETF demand, a key driver of the recent uptrend, has continued to provide a floor. However, Commerzbank warns that positioning in the futures market is already extended, leaving gold vulnerable to a pullback if risk sentiment stabilises.
Source: FXStreet Forex News