Li Jucai: will the U.S. gold market soar? Analysis of the market trend and operation strategy in the evening
“Gold market trend analysis” on May 17, gold rose weekly for the fifth time in six weeks. The decline of US dollar and US bond yields, as well as the news of stagnant growth of US retail sales in April all boosted gold prices. US bond yields fell for the second day in a row, making gold more competitive with other interest bearing assets. Retail sales did not grow in April, weaker than economists expected, which boosted gold’s safe haven appeal. The Fed hinted that it would keep interest rates low. Inflation adjusted yields on U.S. bonds have fallen, making investors chasing high yields turn to gold. Gold ETF positions rose for the fifth consecutive day, the longest growth period since early January. Carsten Fritsch, an analyst at Commerzbank, said ultra loose monetary policy had curbed the rise in bond yields