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Commerzbank: Gold ETF Outflows Continue At Start Of August

Kitco News

Outflows of gold from exchange-traded-fund vaults have continued in early August, says Commerzbank. The ETFs track the price of gold, with metal put into storage to back the shares, thereby giving investors exposure to the price of the precious metal without having to incur assaying and storage costs. “We envisage significantly higher gold prices by year’s end, though for this to happen, the ETF outflows would also have to end, which has not been the case so far,” Commerzbank says. “Following outflows of over 29 tonnes in July, holdings have already been reduced by more than eight tones in the first days of August.”

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

 

BBH: Markets Looking For Catalysts, Await U.S. CPI On Friday

Monday August 6, 2018 08:25

U.S. inflation data is on tap late in the week, but otherwise investors may have to “look elsewhere” for market-driving influences, rather than the normal macroeconomic factors, says Brown Brothers Harriman. “With most of the major central-bank meetings and important economic data out of the way, the dog days of August are upon us,” BBH says. “In terms of drivers, it means that players will have to look elsewhere for inspiration and it means that market liquidity is likely not at its best.” The U.S. Consumer Price Index is due out on Friday. “The headline is likely to have been lifted by gasoline prices, and a new cyclical high for the y/y [year-on-year] rate of 3% may be recorded,” BBH says. “The core rate is expected to be flat at 2.3%. It will translate into a decline in real earnings. Yet this measure is not comprehensive and does not track consumption very well.”

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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