Standard Chartered: Gold ETF Buyers Return To Market
Exchange-traded fund investors havereturned to the gold market, says Standard Chartered. Most precious-metals ETFstrade like a stock but track the price of the commodity, with metal put intostorage to back the shares. Both central banks and ETF investors tend to be“resilient holders” of gold, Standard says. ETF buying of 23 tonnes in Octoberand 13 so far in November, as a Wednesday report, has swung inflows intopositive territory for the year to date, Standard says. “While these flowssuggest a more stable cushion is emerging for gold prices on the downside, whatparticularly stands out is that ETF investors haven’t been quick to liquidateloss-making positions, and instead chose to add to exposure when prices tickedhigher,” Standard says.
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero: Brexit Uncertainty Underpins Comex Gold
Thursday November 15, 2018 10:28
Comex gold is catching a bid fromturmoil surrounding a reported Brexit deal, says George Gero, managing director with RBC Wealth Management.Two of U.K. Prime Minister Theresa May’s cabinet members resigned over acontroversial Brexit plan, and the British pound fell sharply on the news.There are news reports suggesting May could even face a no-confidence vote. Asof 10:15 a.m. EST, Comex December gold was $3.70 higher to $1,213.80 an ounce. Gero adds that the shortside of the market, or bearish positions, has become “a very crowded trade.”This, he says, means a “rally looks to be in place.” These traders must buy tooffset, or exist, their short positions.
By Allen Sykoraof Kitco News; asykora@kitco.com
Standard Chartered: Expected Dec. Fed RateHike To Put Limit Gold Upside
Thursday November 15, 2018 10:28
Expectations for a 25-basis-point ratehike at the December meeting of the Federal Open Market Committee are likely tokeep a lid on gold prices for now, says Standard Chartered. “Gold’sflight-to-safety bid has faded, and it has reverted to taking cues fromcurrency movements,” Standard says. “Further equity-market weakness has failedto trigger safe-haven buying and instead USD [U.S. dollar] strength hasweighed. Gold prices initially found support after the U.S. midterm elections,but then lost ground following weaker-than-expected seasonal demand and lack ofdovish messaging from the Fed.” However, Standard says its foreign-exchangestrategists continue to expect the USD to eventually weaken, which shouldcreate an “increasingly favorable backdrop for gold.”
By Allen SykoraFor Kitco News
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