Money managers decreased their long position in the gold market for the sixth consecutive week. Strategists at Société Générale expect the yellow metal to continue seeing scarce demand.

There is nothing new under the golden sun

“Gold’s bearish streak continued with a flow of USD3.1 bn, the sixth weekly bearish flow in a row for bullion.” 

“A US Fed rate hike supports the dollar, which in turn makes gold less affordable for non-US buyers, thus reducing demand.”

“The Indian rupee and the Chinese renminbi depreciated 0.77% and 1.27% respectively against the dollar during the period. This is expected to weigh further on demand as India and China are two important gold markets.”