Gold shorts are exiting

Summary: This Wednesday (4/24), gold rose over 1% following the first drop in gold futures in three sessions on Tuesday. A grimmer outlook for the global economy is spurring increased physical demand. Growth in China is slowing, and manufacturing numbers in the U.S. and Germany are suggesting a slow down. Weaker growth data in the U.S. and China is what many believe led to the sell off of not only gold, but also industrial commodities like oil. A further slowdown in China will also put pressure on gold. Goldman Sachs is still maintaining their lower forecast, but has recommended investors cease to “short” gold. However, strong physical demand will continue to support the metal – volumes on the Shanghai Gold Exchange broke records for three- straight days. Read more…