Market Nuggets
BMO: Investors Wading Back Into Gold ETFs
Investors are returning to gold exchange-traded funds, says BMO Capital Markets. Analysts cite Bloomberg data showing that global ETFs added some 225,000 ounces to holdings on Wednesday. “This is the highest single-day inflow since mid-April,” BMO says. Still, total holdings are down 0.5% from the start of the year. Gold ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. By contrast, some 235,000 ounces of silver ETF holdings were sold on Wednesday; however, year-to-date gains are 0.8%, BMO points out. Also, daily data showed 15,000 ounces of platinum were added to ETF holdings, while 5,000 ounces of palladium was removed. “Total palladium ETF holdings are now down 26% YTD,” BMO says.
By Allen Sykora of Kitco News; asykora@kitco.com
SP Angel: Gold On Pace For Fifth Straight Month Of Price Declines
Thursday August 30, 2018 08:27
Gold prices are headed for their longest streak of losing months since 2013, says commodities brokerage SP Angel. Around 8 a.m. EDT, Comex December gold was down $1.20 for the day to $1,210.30, well below the end-of-July price of $1,233.60. “The precious metal is on course for the fifth monthly decline, marking the longest stretch of losses since 2013, as U.S. equities climb to new highs and the FOMC [Federal Open Market Committee] continues with the tightening policy,” SP Angel says.
By Allen Sykora of Kitco News; asykora@kitco.com
FXTM: Gold Taking Direction From Dollar, U.S. Rate Expectations
Thursday August 30, 2018 08:27
Gold’s trajectory is being largely influenced by moves in the U.S. dollar and expectations for U.S. interest rates, says Lukman Otunuga, research analyst at FXTM. “The yellow metal depreciated today after reports of U.S. economic growth expanding faster than expected during Q2, [which] cemented market expectations of a U.S. interest rate-hike in September,” the analyst says. “With the dollar likely to stabilize on Fed rate-hike speculation and safe-haven demand, gold could resume the downtrend.” Technically, gold needs to break back below the $1,200 level for bears to attack $1,190 and $1,182, respectively, Otunuga says. “If the $1,200 support holds, then prices could retest $1,214,” the analyst adds. Around 8 a.m. EDT, spot gold was $1.60 lower to $1,204.90.
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