Market Nuggets
MKS: Trump Comments, Chinese Demand Underpin Gold
Spot gold has been boosted by remarks from U.S. President Donald Trump criticizing Fed Chair Jerome Powell for hiking U.S. interest rates, says MKS (Switzerland) S.A. Further, MKS says, “continued demand out of China saw the on-shore premium move toward $6. It was a generally orderly ascent for gold, consolidating above $1,190 in early-session flows, before moving through $1,195….” Should gold climb above the $1,200 level, this would “no doubt test the extended short [bearish] positioning,” MKS adds. As of 8:56 a.m. EDT, spot gold was 35 cents higher at $1,190.70 an ounce but earlier traded around $1,196, its strongest level in a week.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: ETFs, Russia Add To Gold Holdings
Tuesday August 21, 2018 09:11
Exchange-traded funds have posted inflows of gold again, and Russia added more metal to official reserves last month, says Commerzbank. “After gold ETFs tracked by Bloomberg recorded outflows all of last week, they saw a marginal but noticeable inflow yesterday,” the bank says. “The Russian central bank likewise appears to have taken advantage of the low gold prices and bought more gold in July than in the previous months. By its own account, holdings were increased by 839,000 ounces or 26.1 tonnes. The last time the Russian central bank bought more gold in one month was in November.”
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