Gold prices have jumped more than 10% since the start of April amid a weaker dollar and falling bond yields

Michael Dalder/Reuters

  • Gold prices have risen more than 10% since the start of April to near $1900 per ounce.
  • OANDA's Sophie Griffiths says the rise is a result of "falling Treasury yields and a softer tone surrounding the greenback."
  • "Speculative financial investors are also betting increasingly on rising gold prices," according to Commerzbank.
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Gold prices have jumped more than 10% since the start of April to nearly $1,900 per ounce. Since the start of May alone, gold is up roughly 7%.

According to Sophie Griffiths, a market analyst for the FX solutions provider OANDA, the rise in prices is a result of "falling Treasury yields and a softer tone surrounding the greenback."

Griffiths also said that a recent cryptocurrency sell-off could have pushed investors toward gold amid inflation concerns.

According to Cameron Brandt, the Director of Research at EPFR, an Informa Financial Intelligence business, flows into gold hit 19-week highs in the third week of May as well.

A new research report from Commerzbank also shows gold ETFs tracked by Bloomberg have registered almost continuous inflows for the last 2.5 weeks.

Daniel Briesemann, a precious and industrial metals analyst at Commerzbank, said in the new report that "speculative financial investors are also betting increasingly on rising gold prices."

Traders have expanded their net long positions in gold for the third week in a row and net longs are now 82% higher than they were at the start of May, according to data from the report.

Briesemann said that he believes there is still "upside potential" in the gold market due to the Fed's insistence on maintaining "ultra-expansionary monetary policy."

He also said gold could see support from increased Chinese government buying throughout this week.

Despite the recent rise in gold prices, the precious metal still trades below where it did nearly a decade ago in September of 2012.Since the end of 2018, however, Gold is up roughly 40%.

Gold isn't the only precious metal on the move, either.

Copper prices are up some 87% over the past year. The commodity has made a slight retreat over the past two weeks, but experts are still calling it the new oil and making predictions for the price to hit $15,000 per ton by 2025.

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