BullionVault on Friday said that investors are bearish on gold buying.
In an interview to CNBC-TV18, Adrian Ash, editor gold news and head of research, said US sanctions on Iran is definitely affecting crude oil and countries like India.
"You are not seeing equity markets worry about these growing trade tensions, geopolitical tensions, that may change and it will need to change for gold to start seeing consistent inflows from larger investors. We have seen volatility this week and is a factor of two things Firstly, the commodity price volatility as you said crude oil, obviously, that will always allow short term interest in precious metals as an inflation hedge," Ash said.
"Also, we know that speculators are record net short on gold, silver and platinum. So, the opportunity for short squeeze, the opportunity for a short covering rally in precious metals is definitely there. But again, what is going to turn the price to force that short covering is going to have to be a retreat in equity markets," he added.
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