PRESS ROOM
Gold holding up better than our model expected
Tuesday 04th October '22
Despite US 10-year bond yields reaching the highest levels since 2008 and the US Dollar appreciating to a level last seen in 2002, gold has held up relatively well. In fact, our internal forecasts model1 indicates, under such pressure gold should have declined 21% year-on-year in September 2022, yet in reality, gold only fell 5%. Commodity Futures Trading Commission data released on Friday 28th September revealed that shorts in gold futures rose to the highest level since 2018. We believe that a short-covering rally could send gold higher with the appropriate catalyst.
1 See Gold: how we value the precious metal