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Commerzbank: Gold ETF Holdings Up 58.6 Tonnes In 13 Days

Investors continue to pile into global gold exchange-traded funds, with inflows of 58.6 tonnes during the last 13 trading days, says Commerzbank. The ETFs trade like a stock but track the price of the commodity, with gold put into vaults to back the shares. “ETF inflows are evidence of the robust demand for gold at present; holdings in the gold ETFs tracked by Bloomberg were increased yesterday for the 13th day of trading in a row,” Commerzbank says. “During this time, gold ETFs have seen inflows of 58.6 tonnes.”

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

 

FXTM’s Otunuga: Gold May Rise Toward $1,250/Oz

Friday February 17, 2016 08:19

Lukman Otunuga, research analyst at FXTM, looks for gold to approach $1,250 an ounce amid worries about global politics and potential for the U.S. Federal Reserve to keep holding off on interest-rate hikes. Spot metal edged above $1,242 an ounce overnight on U.S. dollar weakness and “ongoing Trump developments,” the analyst says. “This metal remains bullish in the short term amid the rising political risks across the globe and could edge higher towards $1,250 if the revived Fed uncertainty bolsters the yellow metal’s attraction further,” Otunuga says. “Although the strong likelihood of the Fed raising U.S. interest rates this year may pressure gold in the longer term, it will be the cocktail of events in Europe, Brexit woes and the Trump saga that may ensure gold remains buoyed in the short term.”

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

 

BBH: ‘Normalization’ Of U.S. Monetary Policy To Pick Up But Remain ‘Gradual’

Friday February 17, 2016 08:19

Brown Brothers Harriman says the “normalization” of U.S. monetary policy is likely to pick up in 2017 but remain “gradual.” Markets got a number of stronger-than-forecast U.S. economic reports this week, including retail sales and the Consumer Price Index. “An important take-away from this week is the combination of mostly firmer U.S. data…coupled with clear indications from the Fed's leadership…(means) that the normalization process is likely to accelerate this year from 2015 and 2016, but remain gradual,” BBH says. “The implied yield of the March Fed funds futures rose a single basis point to 69 bp (basis points), while the implied yield on the June contract rose 3.5 bp to 85.5. The implied yield on the December contract rose 5 bp to 115.5.” BBH notes that Bloomberg calculates the odds that the Fed funds target range at the end of this year is 1.25%-1.50% (three hikes) is 26.5%, up from 23.9% at the end of last week. “One implication is that there is more scope to discount a third hike, which ostensibly would be supportive for the dollar,” BBH says.

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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