Gold in euro terms under pressure

The gold price in euro terms has fallen significantly and is thus again nearing the €1,000 per troy ounce mark. Money managers had already closed their net short positions in gold ahead of the latest price rise, the majority betting on climbing prices again for the first time in six weeks as per the reporting date of 18 August.

Speculative net long positions are likely to have risen further since then on the back of the price surge. However, this would make gold prone to setbacks if these weak hands were to sell again, said Commerzbank in a report on Monday. The gold ETFs tracked by Bloomberg registered their third daily inflow in a row on Friday - the last time this happened was in June. Indeed the inflows of 8.9 tons are the most pronounced within this space of time in six months.