Salient to Investors:

  • Gold held in ETPs are the lowest in 5 years, gold’s 60-day volatility is near a 5-yr low, and open interest near the lowest since 2009.
  • Brian Levitt at OppenheimerFunds sees no compelling reasons to be in gold, and said no inflationary pressures and a Fed that will tighten sooner than most of its trading partners portends a strong dollar and weaker gold prices.
  • Aram Shishmanian at the World Gold Council said the expansion of trading hubs in Asia will boost demand in China by 20% in 3 years.
  • George Gero at RBC Capital Markets sees a gradual return of retail buyers, says the gold price is very attractive, and expects more buying out of China and India ahead of the festival and marriage season. Gero cites much political turmoil in 2014, and says people want to hedge the bad things happening in the world.
  • Mayer Cherem at Pacific Alternative Asset Mgmt said everything comes back to fundamentals in the agricultural sector – the global crop situation is very comfortable, and there are expectations of big harvests for most crops – and sees much more downside in soybean prices, and weaker corn prices.

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