Gold’s attention has been focused on central banks’ easing policies, rather than the inflationary or deflationary issues surrounding weaker oil prices, say analysts at Triland Metals. “[T]he short-term oversupply [in oil] will seemingly continue and the bounce in prices could be premature…what does this mean for precious metals? Not a great deal actually,” they say. The analysts note that, given recent investor flows, a positive sentiment has manifested itself into the gold market and dips are being bought for the first time since 2012, which could explain why the metal is struggling to breach resistance. “Last week’s commitment of traders report also shows another 13% increase in net gold positioning – which may help to explain some of the offloading we saw ahead of $1,300,” they add.
