Deutsche Bank AG will withdraw from participating in setting gold and silver benchmarks in London after Europe’s top investment bank joined JPMorgan Chase & Co. and Morgan Stanley in cutting back on commodities.
It is again quite confusing for gold fundamentals as it sounds like the Fed has a plan in place for tapering regardless of any economic data, whether it be jobs, inflation, consumer confidence, retail sales or any other type of economic data releases.
It has been uncommon for gold to score single-digit percentage moves either way over the last decade; we see 2014 being an exception. Gold could be described as the 'Marmite' asset class — investors love it or hate it.
There are two main indexes tracked by commodity tracker funds: The S&P-Goldman Sachs Commodities Index and the Dow Jones UBS Commodities Index. Assessing the likely impact of these passive longs on Comex throws a new light on the record level of Managed Money short positions.