Make Kitco Your Homepage

Commerzbank: ETF Gold Holdings Up Nearly 9 Tonnes Over Last Two Days

Kitco News

Global gold exchange-traded funds recorded inflows for the second straight day Wednesday, with inflows over the past two days totaling nearly 9 tonnes, Commerzbank says. “This has reversed more than half of the outflows previously seen this month,” analysts continue. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Further, speculative financial investors are likely to “jump back onto the bandwagon,” the bank says, pointing out that in the run-up to a Federal Reserve meeting last week, money managers in the gold futures market cut their net-long position to the lowest level since January, leaving this roughly 80% below last summer’s high. “There is ample upside potential, in other words,” Commerzbank says.

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

 

FXTM’s Otunuga: Gold Upside ‘Still Has Some Steam’

Thursday March 23, 2017 09:22

A risk-off trading environment lately has boosted appetite for safe-haven assets such as gold, says FXTM research analyst Lukman Otunuga. Prices have climbed to a three-week high above $1,250 an ounce, with U.S. dollar weakness fueling the upside momentum. “Although gold may find itself under pressure in the longer term when the dollar stabilizes, risk aversion could uplift the yellow metal higher in the short term,” Otunuga says. “From a technical standpoint, the fact that bulls have conquered $1,240 on the daily charts suggests that the upside still has some steam. A decisive breakout above $1,250 may open a path towards $1,260.”

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

 

Barclays: Commodity Investment Likely Declined In March

Thursday March 23, 2017 09:22

Recent price weakness throughout the commodities sector means investors likely retreated during March, Barclays says. The British bank estimates that commodity exchange-traded-product inflows this year were around $6 billion through February, with a majority of this in precious metals. Still, this is less than half the pace seen in 2016, Barclays says. “The March sell-off in gold, oil and copper suggests that year-to-date ETP inflows have likely declined from February levels,” the bank 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.