UNITED STATES January 07 2015 10:08 AMTweet
NEW YORK (Scrap Register): Gold's ability to shake off a weaker euro and oil prices could trigger more momentum-based buying, said HSBC in a snippet.
They explain that instead of tracking oil and EUR/USD, the gold market appears to be benefiting from the route in the equity market.
"The ability of gold to track higher in the face of ostensibly bearish moves in currencies and oil may mean that bullion investors are beginning to view EUR-USD and/or oil declines as disorderly and therefore prompting safe haven buying in gold, or that the gold market is becoming inured to currency and commodity declines," said analysts from HSBC to Kitco News.
"Another explanation is that the equity price declines were significant enough to promote more than offsetting flight to quality buying in gold. The explanations tend to favor further gold gains," they added.
