sentix Survey Essentials (English)

Dollar’s grip on Gold may be loosening

Sentix survey participants are becoming more upbeat on equities from a medium- term strategic perspective, with readings on Eurozone markets retracing recent setbacks and the upturn in opinion on the US and Asian markets continuing apace. An increasingly positive strategic bias towards Chinese equities and emerging markets more generally is consistent with the improved tone of sentiment towards commodities. In the case of Gold, investors’ positive view on the metal from a medium-term strategic perspective has moderated in recent months, but survey readings are still elevated in the context of recent years. This is despite investors’ increasingly US dollar-bullish strategic bias on EUR/USD and USD/JPY. It may be that the dollar’s grip on Gold sentiment is loosening. See charts 3-4, p2).