Commodity outlook: Gold in desperate need of a renewed safe-haven buying

After closing lower for the fourth week in a row, the gold price is nearly six per cent below its February peak and at its lowest level since late December.

With gold coming under attack from the twin threats of a strengthening US currency and dwindling safe-haven demand, investors are wondering what can revive interest in the metal. In today’s report, I’ll make the case that there are at least three economic threats which could easily resuscitate gold’s fortunes among safety-conscious investors. These threats include, the still-fragile emerging markets, a weak euro zone economy, and a distant (but possible) scare in the US equity market later this summer.

After closing lower for the fourth week in a row, the gold price is nearly six per cent below its February peak