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Barclays: Most Sept. Commodity ETP Inflows From Precious Metals

Inflows into global commodity exchange-traded products continued in September, with precious metals the key “driving force,” says Barclays. Analysts report that overall commodity ETPs posted a modest inflow of $1.7 billion last month. Although lower than the year-to-date monthly average of $3.9 billion, this nevertheless means that commodities ETPs collectively have seen inflows every single month so far in 2016, analysts say. “Precious metals remained the driving force behind ETPs inflows, bringing in $1.64 billion, while ETPs linked to other sectors saw only $0.1 billion of inflows,” the bank says. “As (of) the end of August, precious metals ETPs had combined inflows of $28.2 billion year-to-date, higher than any full-year inflows on record. Precious metals ETP AUM (assets under management) increased to $114.3 billion at the end of September, which is the highest level since May 2013.”

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

 

TDS: Gold Might Back Up Before Charging Ahead

Friday October 21, 2016 09:45

TD Securities says gold prices “may trend lower before they jump higher.” In a research note, analysts compared their view to the consensus at the recently concluded London Bullion Market Association conference, which was a forecast of $1,347 by the start of the organization’s 2017 gathering in roughly a year. TDS describes the mood at the event as “much more positive than last year,” with a majority of participants cautiously optimistic. Conference participants expressed ideas that the U.S. Federal Reserve will hike interest rates only modestly, with real yields remaining low. There was also strong conviction that monetary accommodation by other major central banks is not leading to significant economic growth, as well as systematic risks building in the global financial system, TDS says. “While TD Securities is also on record saying that gold is likely to reach a $1,350/oz price level, we at the same time believe that there is the risk price could well temporarily drop to below $1,200/oz should the Fed signal more hawkish intensions than it did recently,” the firm says. “Given the fact that price is in the support zone $1,250-1,268/oz and considering despite recent long liquidations, a more hawkish interpretation of Fed policy could well prompt technicians and specs to take profits, as we have seen earlier this month.”

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

 

Commerzbank: India’s Gold Demand Picking Up Ahead Of Festivals

Friday October 21, 2016 09:45

There are increasing signs that Indian gold demand is picking up, says Commerzbank. “According to industry sources, gold imports in October could total 60 (to) 70 tonnes, which would constitute the highest import volume since January,” the bank says. “Demand for gold is picking up at present because of the festival season.” Analysts say Dhanteras and Diwali, to be celebrated at the end of the month, are two of the most important Hindu festivals and a time when gold is traditionally given as a gift.

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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