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Commerzbank: Silver, Gold ETF Inflows Down From 2017

Kitco News

Inflows of gold and silver into global exchange-traded funds for the year to date are well below the tallies for 2017, says Commerzbank. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Analysts cite Bloomberg data showing that gold ETFs have seen inflows of 229 tonnes so far this year. “If this does not change before the end of the year, inflows will not have been even half as high as last year,” Commerzbank says. “Silver ETFs have seen inflows of a mere 180 tonnes. Last year the figure was eight times as high.”

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

 

BMO: Spot Gold Faces Resistance Around $1,270/Oz

Wednesday September 20, 2017 07:54

Gold appears to be running into chart resistance on the approach to $1,270 an ounce, after the metal made a “slow and steady” recovery in recent sessions, says BMO Capital Markets. Spot metal put in daily highs in the $1,260s each of the last three days and has peaked at $1,266.50 so far Wednesday, but appears to be “struggling to gain a foothold,” BMO says. “After bottoming out at a five-month low towards $1,238/oz earlier this month, spot prices have staged a modest recovery, aided by an under-pressure dollar and comments from the Fed, which point to a cautious path for tightening monetary policy.” As of 7:47 a.m. EST, spot gold was up $4.40 to $1,265.85 an ounce.

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

 

BBH: Markets To Assess How U.S. Tax Reform Affects 2018 Elections

Wednesday September 20, 2017 07:54

Passage of U.S. tax reform now appears to be a “foregone conclusion,” and among other things, investors will be watching to see how this affects the next round of U.S. elections, says Brown Brothers Harriman. The Senate passed tax legislation 51-48 just after midnight.  Due to procedural issues, the House must return to the House for one final vote Wednesday but approval is widely expected. “Passage has been widely expected for days, and so the market reaction today has been largely muted,” BBH says. “With the package coming in pretty much as expected, the main question is how this bill will impact the midterm 2018 elections.  Polls show widespread skepticism over the benefits of the bill for the middle class.  Politicians from both sides of the aisle will be watching these polls closely as 2018 gets under way and the jockeying picks up ahead of the November vote.”

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