Gold selling pressure to return on Fed hike expectations - Deutsche Bank

FXStreet (Bali) - According to Deutsche Bank Market Research Team, a US Fed policy rate increase this year sets a generally negative backdrop for gold, adding that European QE will not be as positive for gold as US QE was.

Key Quotes

"We believe that a US Fed policy rate increase this year sets a generally negative backdrop for gold, although the pace of rate hikes is likely to be slower than in the past. The most positive development for gold has been the decline in real yields since the start of the year."

"We do not view the extent of increases in gold ETF holdings as substantially supportive, and European QE will not be as positive for gold as US QE was owing to the countervailing impact of the strengthening dollar, in our view."