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RBC's Gero: Comex Gold Open Interest, ETF Holdings Rise

Speculators in the futures market and exchange-traded-fund investors are continuing to return to the gold market, says George Gero, managing director with RBC Wealth Management.  Data on the CME Group website show 420,146 open positions in Comex gold futures as of Wednesday, up from 415,128 as of Tuesday. This happened as price rose, generally seen as a sign of fresh buying. Meanwhile, gold in storage to back SPDR Gold Shares, the world’s largest gold ETF, climbed to 843.54 tonnes as of Wednesday from 840.87 the day before. Gero says gold has rallied despite “headwinds from Fed rate-hike possibilities,” with funds still adding to positions amid higher closes, moving averages, signs of inflation and political concerns in the euro zone U.S.

By Allen Sykora of Kitco News; asykora@kitco.com

 

INTL FCStone: Gold Investors Focusing On Rising Inflation

Thursday February 16, 2016 09:33

Gold appears to be drawing some of its support from rising inflation concerns, says INTL FCStone. As of 9:22 a.m. EST, Comex April gold was up $6.10 to $1,239.20 an ounce. U.S. economic data has been mostly strong the last two days, including a report Wednesday showing U.S. consumer prices rose 0.6% last month. The year-on-year core inflation rate of 2.3% was above the Federal Reserve’s 2% target, INTL FCStone points out. “In the precious-metals space, gold is up…as investors are shrugging off the recent upward trend in the dollar and soaring U.S. equity prices, focusing instead on rising inflation readings and the possibility of additional fiscal measures that could be rolled out by the Trump administration,” INTL FCStone says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

FXTM’s Ahman: Gold Higher On Worries About Stock Market?

Thursday February 16, 2016 09:33

Jameel Ahmad, vice president of market research at FXTM, raises a question – are gold investors buying the yellow metal on worries the stock-market rally will fizzle out at some point. “It’s very interesting in my eyes that investors are continuing to be enticed towards gold, regardless of U.S. stock markets maintaining their positions around record levels,” the analyst says. “Of course dollar weakness helps gold, but I am just wondering if investors are hedging towards the precious metal as a result of questions remaining in the background as to whether this stock-market rally can really continue.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: European Car Sales Constructive For Platinum

Thursday February 16, 2016 09:33

Stronger European car sales have been supportive for platinum, says Commerzbank. European demand is especially important to the metal since diesel-powered vehicles, which need platinum for catalytic converters, are popular in Europe. By contrast, gasoline-powered vehicles popular in the U.S. and China can use palladium instead. “The European auto industry has got off to a strong start to the new year,” Commerzbank says. “According to the European Automobile Manufacturers Association, a good 10% more new cars were registered in the EU (European Union) in January than a year earlier. Because the European auto market is diesel-heavy, this has lent support first and foremost to the platinum price, which surged by 10% in January.”

By Allen Sykora of Kitco News; 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.
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