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Price Futures' Flynn: Bitcoin Launch May Help Gold Prices

Kitco News

The launch of Bitcoin futures could mean some short selling in the cryptocurrency that in turn results in safe-haven demand for gold, says Phil Flynn, senior market analyst with at Price Futures Group. The cryptocurrency has soared this year, with some analysts lately suggesting that it may have entered “bubble” territory after a parabolic move higher. Up until now, it was hard to “short,” or take out a bearish bet, on Bitcoin, Flynn points out. But that will change when the currency starts trading on exchanges, and some traders very might well bet that cryptocurrency will pull back. “If we get a big correction in Bitcoin, gold could get a safe-haven bid,” Flynn says.

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

 

BBH: Market Still Expects Fed Rate Hike After Jobs Report

Friday December 08, 2017 09:30

Growth in average hourly earnings in the monthly U.S. jobs report was disappointing but likely will not stop the Federal Open Market Committee from hiking interest rates next week, as expected, says Brown Brothers Harriman. Nonfarm payrolls rose 228,000 and average hourly earnings rose 0.2% for the month and 2.5% year-on-year. A Bloomberg survey had called for both to be a tenth of a percentage point higher. BBH lists two upside surprises in the jobs report. The average work week ticked up to 34.5 hours from 34.4, which matches the high of the year, and manufacturing jobs jumped 31,000 after a 23,000 increase in October. “Although the earnings growth disappointed, the market will not be deterred from expecting the Fed to still hike rates 25 bp [basis points] next week,” BBH says.

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

 

Commerzbank: Gold ETFs On Pace For Net Inflow In 2017

Friday December 08, 2017 09:30

Global gold exchange-traded funds collectively are headed to their second straight year of net inflows in 2017, says Commerzbank.  “They had amounted to just shy of 230 tonnes by the end of November, though the lion’s share of the inflows took place in the first half of the year,” the bank says. “On balance, ETF investors have hardly bought any gold at all since the end of September.” Nevertheless, inflows are unlikely to match the net purchases of 470 tonnes recorded last year, Commerzbank adds. Gold ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

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