Deutsche Bank retains bearish view on Gold; Positive on Aluminum

UNITED STATES March 11 2015 4:36 PM
LONDON (Scrap Register): Deutsche Bank retain their bearish view on gold, with the metal coming under pressure from a strong dollar.

Deutsche Bank continues to forecast a further strengthening of the dollar which will keep gold under pressure. Deutsche Bank expects the performance of precious metal returns will also be closely tied to US payroll employment growth and Fed rate expectations.

Over the past few weeks, supply side disruptions in copper have been the catalyst for a price recovery. Whilst the Bank thinks the recovery may have some momentum, they still forecast a surplus for this year and lower prices on average for 2015.

Although their outlook for aluminium remains generally positive, Deutsche Bank lowers their price expectations on slower global demand growth forecasts and a deflationary cost environment.