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Standard Chartered: Gold ETF Buyers Return To Market

Kitco News

Exchange-traded fund investors have returned to the gold market, says Standard Chartered. Most precious-metals ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Both central banks and ETF investors tend to be “resilient holders” of gold, Standard says. ETF buying of 23 tonnes in October and 13 so far in November, as a Wednesday report, has swung inflows into positive territory for the year to date, Standard says. “While these flows suggest a more stable cushion is emerging for gold prices on the downside, what particularly stands out is that ETF investors haven’t been quick to liquidate loss-making positions, and instead chose to add to exposure when prices ticked higher,” Standard says.

By Allen Sykora of Kitco News;


RBC’s Gero: Brexit Uncertainty Underpins Comex Gold

Thursday November 15, 2018 10:28

 Comex gold is catching a bid from turmoil surrounding a reported Brexit deal, says George Gero, managing director with RBC Wealth Management. Two of U.K. Prime Minister Theresa May’s cabinet members resigned over a controversial Brexit plan, and the British pound fell sharply on the news. There are news reports suggesting May could even face a no-confidence vote. As of 10:15 a.m. EST, Comex December gold was $3.70 higher to $1,213.80 an ounce. Gero adds that the short side of the market, or bearish positions, has become “a very crowded trade.” This, he says, means a “rally looks to be in place.” These traders must buy to offset, or exist, their short positions.

By Allen Sykora of Kitco News;


Standard Chartered: Expected Dec. Fed Rate Hike To Put Limit Gold Upside

Thursday November 15, 2018 10:28

Expectations for a 25-basis-point rate hike at the December meeting of the Federal Open Market Committee are likely to keep a lid on gold prices for now, says Standard Chartered. “Gold’s flight-to-safety bid has faded, and it has reverted to taking cues from currency movements,” Standard says. “Further equity-market weakness has failed to trigger safe-haven buying and instead USD [U.S. dollar] strength has weighed. Gold prices initially found support after the U.S. midterm elections, but then lost ground following weaker-than-expected seasonal demand and lack of dovish messaging from the Fed.” However, Standard says its foreign-exchange strategists continue to expect the USD to eventually weaken, which should create an “increasingly favorable backdrop for gold.”

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.

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