Commerzbank: Gold ETF Outflows Continue At Start Of August
Outflows ofgold from exchange-traded-fund vaults have continued in early August, saysCommerzbank. The ETFs track the price of gold, with metal put into storage toback the shares, thereby giving investors exposure to the price of the preciousmetal without having to incur assaying and storage costs. “We envisage significantly higher gold prices by year’s end,though for this to happen, the ETF outflows would also have to end, which hasnot been the case so far,” Commerzbank says. “Following outflows of over 29tonnes in July, holdings have already been reduced by more than eight tones inthe first days of August.”
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Markets Looking For Catalysts, Await U.S.CPI On Friday
Monday August 6, 2018 08:25
U.S. inflation data is on tap late in theweek, but otherwise investors may have to “look elsewhere” for market-drivinginfluences, rather than the normal macroeconomic factors, says Brown BrothersHarriman. “With most of the major central-bank meetings and important economicdata out of the way, the dog days of August are upon us,” BBH says. “In terms of drivers, itmeans that players will have to look elsewhere for inspiration and it meansthat market liquidity is likely not at its best.” The U.S. Consumer Price Indexis due out on Friday. “The headline is likely to have been lifted by gasolineprices, and a new cyclical high for the y/y [year-on-year] rate of 3% may berecorded,” BBH says. “The core rate is expected to be flat at 2.3%. It willtranslate into a decline in real earnings. Yet this measure is notcomprehensive and does not track consumption very well.”
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