Commerzbank: Gold ETFs Post Largest Inflow In 11 Months
"Massive demand" forgold exchange-traded funds lately reflects a surge in safe-haven buying of themetal, says Commerzbank. Global ETFs posted inflows of 14.6 tonnes Wednesday,the most in 11 months, analyst point out. Almost 10 tonnes were attributable tothe world's largest gold ETF, the SPDR Gold Trust. "Clearly investors areseeking to hedge against the numerous risks," Commerzbank says. These risksinclude not only the U.K. election and a congressional hearing involving formerFBI Director James Comey, but also events in the Middle East after twoterrorist attacks in the Iranian capital of Teheran Wednesday. "Although IS wasprobably behind the attacks, Iran is also holding Saudi Arabia partlyresponsible," Commerzbank says. "There is thus the risk of tensions escalatingfurther between Saudi Arabia and Iran - the two leading powers in the region -in addition to the latent crisis surrounding the Gulf emirate of Qatar."
By Allen Sykoraof Kitco News; asykora@kitco.com
UBS: Macro Conditions Support Higher Gold Prices
Thursday June 8, 2017 08:40
UBS saysmacroeconomic forces justify the strength in gold since mid-May. "Inparticular, lower rates, weaker dollar and broader uncertainty provide[a] good foundation for the market to continue its journey higher," the banksays. The uncertainties include central-bank meetings and global political risks,UBS explains. "We've argued gold's role as a diversifier in investorportfolios, and this is becoming increasingly relevant in the currentenvironment," UBS says. "Despite the rally from the lows printed in May, wethink gold positioning is not crowded overall and there should be room for themove to extend. While a pause is understandable around key resistance levelsand ahead of key events in the near term, we think the market should staysupported overall and would view dips as an opportunity to build/add topositions."
By Allen Sykoraof Kitco News; asykora@kitco.com
UBS ExpectsEventual Pickup In Chinese Official-Sector Gold Reserves
Thursday June 8, 2017 08:40
UBS looks forofficial-sector Chinese gold reserves to eventually rise again, even thoughthey have been flat since October. News this week shows that the country'sofficial gold reserves remained at 59.24 million ounces, or around 1,843tonnes, as of the end of May. "This creates downside risks to official-sectorgold demand, considering China accounted for about 20% of buying last year,"UBS analysts said. "We maintain our base case that purchases should resume upahead as overall official reserves stabilize, given that the diversificationargument remains intact. Nevertheless, we acknowledge growing risks to thisview considering that the pause in buying has gone on longer than what weinitially expected."
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 precious metal products, 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.  |