DB Gold Double Long ETN due February 15, 2038

DGP

Market cap $244M

The gold market continues to test its lower bounds, with one analyst seeing further fragility in the marketplace.

Spot gold and silver prices are sharply lower after the close Tuesday, as rate-hike expectations and a bearish technical break outweighed weaker crude oil and residual safe-haven demand tied to the Strait of Hormuz.

While most investors have been focused on gold's recent breakdown, there has been a broad-based sell-off in the precious metals complex, with platinum group metals feeling the brunt of the sell-off.

Rising debt and inflation levels are repricing markets while the constraints on available policy responses favor hard assets, and the recent price pullback and subsequent consolidation of gold and silver hasn't violated this thesis, according to Paul Wong, managing partner and market strategist at Sprott Inc.

The gold market continues to struggle to attract new bullish attention and could see renewed selling pressure as the U.S. housing market appears to be stabilizing.

Spot gold prices are firmer and spot silver prices are also higher in early U.S. trading Tuesday, as oil prices pulled back, U.S. equity futures pointed higher and traders looked ahead to Wednesday's May consumer price index.

Gold has just fallen into bear market territory, as it is down by over 20% from its all-time highs reached earlier this year. I detail why this happened and why the long-term bull thesis remains intact.

Spot gold prices were near steady and spot silver prices were firmer in late-afternoon U.S. trading Monday, as perceived safe-haven demand tied to renewed Middle East tensions was offset by firmer rate expectations after Friday's U.S. jobs report.

After Friday's breakdown, gold prices could have further to fall, but some analysts believe investors should ignore the noise and focus on the bigger picture.

Gold prices are not seeing any safe-haven bid as a result of the latest round of conflict in the Middle East, while several key metrics show investor interest in silver is waning, according to precious metals analysts at Heraeus.In their latest update, the analysts noted that gold recently overtook Treasuries as the most valuable central bank reserve asset.