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Commerzbank: Swiss Oct. Gold Exports To Asia Are Weak

Kitco News

Monthly data from the Swiss Federal Customs Administration show that gold demand in key Asian buying nations was weak during October, says Commerzbank. The report shows that Switzerland exported only 11.3 tonnes of gold to India last month, the least in at least five years. “This was probably due to sharp rises in local gold prices, as gold in Indian rupees increased by over 10% in price between mid-August and mid-October,” Commerzbank says. “The high Hindu festivals of Dhanteras and Diwali in early November, when a lot of gold is normally given as gifts, were unable to redress the balance.” Also, Swiss gold exports to China and Hong Kong totaled only 34.3 tonnes last month, Commerzbank points out. “Only in July was somewhat less gold shipped from Switzerland to China and its neighboring former British crown colony,” Commerzbank says. “Gold in [the] Chinese yuan had increased by a good 6% in price between mid-August and the end of October.” However, Commerzbank adds that since World Gold Council figures showed that Chinese demand was robust in the first three quarters of the year, China may well have recently imported more gold from other countries. 

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

 

BMO: Central Banks Accelerate Gold Purchases

Tuesday November 20, 2018 08:57

Central banks accelerated gold purchases during October, says BMO Capital Markets. Analysts offered their insight in the wake of monthly data from the International Monetary Fund. “Taking advantage of weaker gold prices compared to the first half of the year and as equity markets continue to sell off, IMF data indicates that central banks have accelerated physical gold purchases throughout October, contrasting the first half of the year where central-bank buying remained subdued,” BMO says. They note that Kazakhstan’s central bank added some 200,000 ounces in October, bringing total holdings to 10.97 million, while Turkey’s reserves increased after six months of outflows, with gold holdings totaling 15.16 million ounces. BMO notes that Russia added 960,000 ounces over the same period, taking holdings to 66.43 million. Malaysia recorded a net inflow for the first time since January 2017, taking its total to 1.25 million ounces, the most since 1999. Meanwhile, China maintained gold reserves at 59.24 million ounces. Earlier this month, several analysts told Kitco News that central banks collectively are on a pace to increase annual gold purchases for the first time since 2014.

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

 

MKS: ‘Gold’s Safe-Haven Status Intact’

Tuesday November 20, 2018 08:57

Gold is continuing to draw safe-haven buying interest, says MKS (Switzerland) S.A. As of 8:38 a.m. EST, spot metal was $3.60 higher to $1,227.50 an ounce. “Trade tensions remain heightened between the U.S. and China, global equities are under pressure, while Brexit negotiations continue to create uncertainty across markets, keeping gold’s safe-haven status intact,” MKS says in an overnight research note. “Interest around $1,215-$1,220 remains supportive to the yellow metal, while $1,225-$1,230 remains a pivot for a test through to $1,235.” 

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

 

TDS: Gold Break Below $1,213 Could Trigger More CTA Selling

Tuesday November 20, 2018 08:57

Commodity Trading Advisers could accelerate their selling of gold if the metal should fall below $1,213 an ounce, says TD Securities. As of 8:38 a.m. EST, spot metal had gained $3.60 to $1,227.50 an ounce. “With ongoing political uncertainty in Europe and what some perceive as a soft floor in equities, gold has held its ground in the middle of our $1,180-$1,240/oz range,” TDS says. “That being said, any additional weakness is likely to be met with CTA selling, as systematic trend followers add to their shorts below the $1,213/oz range.”

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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