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Adrian Day Sees Supportive Influences For Gold In Long Term

Kitco News

Despite recent weakness, gold remains the favorite metal for Adrian Day, chairman and chief executive officer of Adrian Day Asset Management. Gold closed the second quarter around the low for the year as the widening tariff disputes boosted the dollar, Days says. However, in the longer term, a trade war could hurt the greenback, he says. “Short term, many factors are negative for gold: the strong dollar, monetary tightening and the easing of tensions with North Korea,” Day says. “Gold is also in a seasonally weak period. Further out, however, these factors change.” For starters, gold has traditionally risen in August and September after a weak July and negative May and June. “Beyond that, the dollar is vulnerable, and the Fed may slow or even pause its tightening,” Day says. “A break in the stock market would also help gold. Already, institutional investors are beginning to hedge their equity exposure with bullion or gold ETFs [exchange-traded funds]. This is in sharp contrast to retail investors, as suggested by coin sales at 10-year lows.”

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

 

CME Group: 2Q Metals Volume Rises 27% From Year Ago

Tuesday July 03, 2018 08:26

CME Group metals volume averaged 674,000 contracts per day in the second quarter, which was a year-on-year gain of 27%, the exchange operator reports. Average daily volume for gold futures and options grew 29% to 383,000 contracts, while this climbed 7% for silver futures and options to 115,000 contracts. Copper futures and options average volume rose 43% to 146,000 contracts. Meanwhile, the average metals volume for the month of May climbed 30% year-on-year to 666,000 contracts. CME Group reports that volume in platinum futures hit a record of 58,000 contracts on June 22.

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

 

Commerzbank: ETF Gold Holdings Decline By Most Since March

Tuesday July 03, 2018 08:26

Gold holdings of exchange-traded funds have fallen by the largest amount since near the end of the first quarter, says Commerzbank. These ETFs trade like a stock but track the price of the commodity, with the precious metal put into storage to back the shares. “Gold ETFs saw outflows of 9.1 tonnes yesterday, their biggest daily outflow since the end of March,” Commerzbank says.

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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