The U.S. Comex gold futures (COMEX:GCK14) have increased a respectable 6.75% in Q1 although the prices have climbed as high as 14.59% by mid-March but have slumped 2.89% in March. The gold futures declined for five consecutive days and ended at $1,280 on April 1.
China’s manufacturing weakness will likely prompt the government to increase its construction spending sooner rather than later. Some analysts expect China to cut the banks’ reserve requirement to support liquidity especially after the onshore bond defaults and slowing growth momentum.
The dovish comments made by the Fed Chairman on 31 March redirected the market’s focus on the slack in the economy, which will keep the Fed stimulus on for “quite some time.” Also, the NATO has pointed out that there are no real signs that the Russian troops are retreating from the Ukrainian border, which could boost the physical demand for gold as valuation has become cheaper.
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