BMO: Investors Wading Back Into Gold ETFs
Investors are returning to gold exchange-traded funds, saysBMO Capital Markets. Analysts cite Bloomberg data showing that global ETFsadded some 225,000 ounces to holdings on Wednesday. “This is the highestsingle-day inflow since mid-April,” BMO says. Still, total holdings are down0.5% from the start of the year. Gold ETFs trade like a stockbut track the price of the commodity, with metal put into storage to back theshares. By contrast, some 235,000 ounces of silver ETF holdings were sold onWednesday; however, year-to-date gains are 0.8%, BMO points out. Also,daily data showed 15,000 ounces of platinum were added to ETF holdings, while5,000 ounces of palladium was removed. “Total palladium ETF holdings are nowdown 26% YTD,” BMO says.
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Gold On Pace For Fifth Straight Month Of Price Declines
Thursday August 30, 2018 08:27
Goldprices are headed for their longest streak of losing months since 2013, sayscommodities brokerage SP Angel. Around 8 a.m. EDT, Comex December gold was down$1.20 for the day to $1,210.30, well below the end-of-July price of$1,233.60. “The precious metal is on course for the fifth monthly decline, markingthe longest stretch of losses since 2013, as U.S. equities climb to new highsand the FOMC [Federal Open Market Committee] continues with the tighteningpolicy,” SP Angel says.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: Gold Taking Direction From Dollar, U.S. Rate Expectations
Thursday August 30, 2018 08:27
Gold’s trajectory is beinglargely influenced by moves in the U.S. dollar and expectations for U.S.interest rates, says Lukman Otunuga, researchanalyst at FXTM. “The yellow metal depreciated today after reports ofU.S. economic growth expanding faster than expected during Q2, [which] cementedmarket expectations of a U.S. interest rate-hike in September,” the analystsays. “With the dollar likely to stabilize on Fed rate-hike speculation andsafe-haven demand, gold could resume the downtrend.” Technically, gold needs tobreak back below the $1,200 level for bears to attack $1,190 and $1,182,respectively, Otunuga says. “If the $1,200 support holds, then prices couldretest $1,214,” the analyst adds. Around 8 a.m. EDT, spot gold was $1.60 lower to $1,204.90.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.