Commerzbank: Gold ETF Holdings Down 45 Tonnes In August
Holdingsof gold by global exchange-traded funds are continuing to decline, reportsCommerzbank. The ETFs tradelike a stock but track the price of the commodity, with metal put into storageto back the shares. They give investors exposure to the gold price withoutincurring certain expenses such as assaying and storage. “ETFinvestors - [who] tend to take a longer-term view - are continuing towithdraw,” Commerzbank says. “The gold ETFs tracked by Bloomberg registeredoutflows of 4.5 tonnes yesterday, their highest in two weeks. Holdings havebeen reduced by a good 45 tonnes in August so far. By contrast, silver ETFholdings have remained largely stable, and platinum and palladium ETFs haveeven recorded inflows of 25,000 and 40,000 ounces, respectively, since thestart of the month.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Gold Break Of $1,215/Oz Would Make Shorts 'Nervous'
Wednesday August 29, 2018 08:45
MKS (Switzerland) S.A. sees golddrawing support below $1,200 an ounce, with likely nervousness among bearishtraders, known as shorts, if prices rise above $1,215. Around 8:36 a.m. EDT,spot metal was up $2.80 to $1,203.30 an ounce. “We feel dips below $1,200 should be supported for the interim andlook for a retest of $1,215 in the near term, a break of which will make shortsnervous,” MKS says. This could prompt short covering, which is when traders buyto exit from bearish trades. MKS describes gold trading as “reserved” duringAsia-Pacific hours but “making a slow and steady push” higher to start the day.There was “modest demand” in Shanghai trading, although volume was “a littledisappointing” considering Tuesday’s retreat in prices, MKS says. “The premiumstill remained healthy though and in the middle of the recent range at around$6-6.50 over the loco London price,” MKS says.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: U.S. Faces Tight Timeframe In Pushing Through NAFTA Changes
Wednesday August 29, 2018 08:45
While the Trump administration is putting pressure onCanada to renegotiate a trade deal within days, the U.S. may actually be thecountry running out of time for any deal to be ratified by Congress, explainsBrown Brothers Harriman. The government has announced a deal with Mexico andinsinuated the U.S. will go on without Canada, but BBH says Canada plays a moresignificant role than the U.S. wants to admit. “The trade-promotion authority he [Trump] was granted byCongress was the renegotiation of a trilateral agreement,” BBH says. “It is notclear to Washington insiders that Congress would approve a deal that excludedCanada, which is the main foreign trading partner of 36 of the 50 U.S. states.” Meanwhile, the schedule is not flexible, BBH explains.Mexico’s next president takes office Dec. 1. “If Congress can be notified onAug. 31, that means that a revised NAFTA bill Congress can vote on is Nov. 30,”BBH says. “The 115th Congress is likely to conclude in early December. Alame-duck session of Congress could be called to vote on it, but this seemsless probable, especially after the first week or so of the December. That could leave it in the hands of the 116th Congress, which will bedecided in November, and as is typically the case, the polls show the partyoccupying the White House will lose seats in both chambers.”
By Allen SykoraFor Kitco News
Follow @AllenSykora
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.