"We remain of the view that precious metals such as gold should prove an attractive medium-term buy in the current environment. This is not only due to rising uncertainty about global central banks' ability to stimulate their respective economies; political developments in Europe and elsewhere may unsettle markets somewhat, at least from a broader angle. It may be true that global risk sentiment remains broadly stable. However, a large part of that stability was due to rising liquidity expectations rather than better global growth prospects.

From the current levels, we see limited room for major central banks such as the Fed or ECB turning more aggressive, and that may cause more unstable market conditions ahead.

In terms of trade recommendations, we stay long XAU/CHF. In that respect, it must still be noted that the SNB's aggressive monetary policy stance is keeping the franc's safe haven appeal low. The central bank meets this week and we expect them to reaffirm that a policy mix consisting of negative interest rates and FX intervention stays intact".

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