Standard Chartered: ETP Gold Holdings Up 24.4 Tonnes In April
Exchange-traded-product holdings of goldare higher so far this month after investors increased their exposure to theprecious metal in the first quarter, led by buying in the U.S. and China, saysStandard Chartered. “ETP holdings are up 24.4 tonnes (t) so far in April,compared to inflows of 47t in Q1 2018,” Standard says. “While Europe holdingswere relatively insulated last year, the baton has passed to North America andAsia this year. Metal held in trust in Q1 was up 38t in North America (drivenby the U.S., as Canada is flat) and up 11.9t in Asia (mostly driven by China),but down in Europe. We think a key weak spot in the market is the absence ofretail investors in the U.S., but a turn in ETP flows suggests that localappetite for gold may be turning.”
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: Gold Weaker ButGeopolitical Worries May Limit Downside
Thursday April 12, 2018 9:44
Gold is facing pressure from expectationsfor more U.S. interest-rate hikes but at the same time may draw support fromgeopolitical worries, says Lukman Otunuga, research analyst at FXTM. The analystsblames weakness in gold Thursday on hawkishly construed minutes from the latest policy meeting of theFederal Open Market Committee, boosting expectations for a faster pace ofmonetary tightening this year. “Although the yellow metal may find itselfexposed to downside risks in a high interest-rate environment, losses could belimited by risk aversion,” Otunuga says. “With geopolitical risk, U.S.-Russiapolitical uncertainty and lingering trade-war fears still weighing onsentiment, gold, which is often popular in times of financial uncertainty, islikely to remain supported.” Spot gold was around $1,343 an ounce at 9:15 a.m.EDT. “Previous resistance around $1,340 could transform into a dynamic supportthat can encourage an appreciation back towards $1,360,” Otunuga says. “Afailure for bulls to maintain control above $1,340 could result in pricessinking towards $1,324.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Standard Charted: Gold Faces Upside‘Hurdle’ Yet ‘Floor Looks Well Supported’
Thursday April 12, 2018 9:44
Gold is facing technical hurdles on theupside as the range-bound market remains caught between political and economicdrivers, says Standard Chartered. Gold prices tested intra-year highs Wednesdayon a flight to safety driven by the escalating uncertainty about U.S. sanctionson Russia and U.S.-China trade tensions, Standard says. “Tactical positioningwas relatively light, suggesting scope for additional net length; however, U.S.inflation data and March FOMC [Federal Open Market Committee] minutes stalledgold’s rally. The hawkish minutes knocked the wind out of gold’s sails, and weexpect prices to test the downside as we approach the June FOMC.” StandardChartered describes the physical market as “somewhat mixed” although withbuying from India. “However, gold’s floor looks well supported amid thegeopolitical uncertainty, especially as exchange-traded-product buying hasturned positive. The upside still appears to be a difficult hurdle to breach.”
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.