Gold price has chalked up gains at the start of the new year. Nonetheless, strategists at Commerzbank envisage a risk of setbacks in the yellow metal market.

Any lasting recovery will require a shift in sentiment among ETF investors

“Gold’s upswing is presumably due primarily to more optimism among speculative financial investors, who are generally more fickle.”

“However, any lasting recovery of prices on the Gold market will require above all a shift in sentiment among ETF investors, who are still exercising caution. They appear to be waiting for the US rate hike cycle to come to an end.” 

“In the short term, we envisage if anything a risk of setbacks on the gold market.”