Commerzbank: Swiss Oct. Gold Exports To Asia Are Weak
Monthly data from the Swiss Federal Customs Administrationshow that gold demand in key Asian buying nations was weak during October, saysCommerzbank. The report shows that Switzerland exported only 11.3 tonnes ofgold to India last month, the least in at least five years. “This was probablydue to sharp rises in local gold prices, as gold in Indian rupees increased byover 10% in price between mid-August and mid-October,” Commerzbank says. “Thehigh Hindu festivals of Dhanteras and Diwali in early November, when a lot ofgold is normally given as gifts, were unable to redress the balance.” Also,Swiss gold exports to China and Hong Kong totaled only 34.3 tonnes last month,Commerzbank points out. “Only in July was somewhat less gold shipped fromSwitzerland to China and its neighboring former British crown colony,”Commerzbank says. “Gold in [the] Chinese yuan had increased by a good 6% inprice between mid-August and the end of October.” However, Commerzbank addsthat since World Gold Council figures showed that Chinese demand was robust inthe first three quarters of the year, China may well have recently importedmore gold from other countries.
By Allen Sykoraof Kitco News; asykora@kitco.com
BMO: CentralBanks Accelerate Gold Purchases
Tuesday November 20, 2018 08:57
Central banks accelerated gold purchases duringOctober, says BMO Capital Markets. Analysts offered their insight in the wakeof monthly data from the International Monetary Fund. “Taking advantage ofweaker gold prices compared to the first half of the year and as equitymarkets continue to sell off, IMF data indicates that central banks haveaccelerated physical gold purchases throughout October, contrasting the firsthalf of the year where central-bank buying remained subdued,” BMO says. Theynote that Kazakhstan’s central bank added some 200,000 ounces in October,bringing total holdings to 10.97 million, while Turkey’s reserves increasedafter six months of outflows, with gold holdings totaling 15.16 million ounces.BMO notes that Russia added 960,000 ounces over the same period, takingholdings to 66.43 million. Malaysia recorded a net inflow for the first timesince January 2017, taking its total to 1.25 million ounces, the most since1999. Meanwhile, China maintained gold reserves at 59.24 million ounces.Earlier this month, several analysts told Kitco News that central bankscollectively are on a pace to increase annual gold purchases for thefirst time since 2014.
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: ‘Gold’s Safe-Haven Status Intact’
Tuesday November 20, 2018 08:57
Gold is continuing to draw safe-havenbuying interest, says MKS (Switzerland) S.A. As of 8:38 a.m. EST, spot metalwas $3.60 higher to $1,227.50 an ounce. “Trade tensions remain heightenedbetween the U.S. and China, global equities are under pressure, while Brexitnegotiations continue to create uncertainty across markets, keeping gold’ssafe-haven status intact,” MKS says in an overnight research note. “Interestaround $1,215-$1,220 remains supportive to the yellow metal, while$1,225-$1,230 remains a pivot for a test through to $1,235.”
By Allen Sykoraof Kitco News; asykora@kitco.com
TDS:Gold Break Below $1,213 Could Trigger More CTA Selling
Tuesday November 20, 2018 08:57
Commodity Trading Advisers could accelerate their selling ofgold if the metal should fall below $1,213 an ounce, says TD Securities. As of 8:38 a.m. EST, spot metal had gained$3.60 to $1,227.50 an ounce. “With ongoing politicaluncertainty in Europe and what some perceive as a soft floor in equities, goldhas held its ground in the middle of our $1,180-$1,240/oz range,” TDS says.“That being said, any additional weakness is likely to be met with CTA selling,as systematic trend followers add to their shorts below the $1,213/oz range.”
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.