3 October, 2016

Gold lost ground on Friday, losing about $10/ounce, although other metals within the group did not fare as badly and closed up slightly. The modest improvement with regard to the outlook for Deutsche Bank was behind gold’s retreat, leading to a broad-based advance in the US equity markets instead. In this regard, there is speculation that the US Department of Justice could be wrapping up settlement talks with Deutsche Bank and that the final figure that will be agreed to in terms of a penalty may be far less than the $14 billion figure bandied about last week. However, as is the case with these types of situations, things need to get resolved fairly quickly, or else investors could sour on the company in question in fairly short order. As a result, we think it is imperative that Deutsche Bank announces some sort of deal in the next day or two, or risk seeing its stock shredded once again