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Commerzbank: Investors Piling Into Gold ETFs

Kitco News

Holdings of gold by global exchange-traded funds show that investor interest in the precious metal has carried last year’s momentum into the new year, says Commerzbank. Since the start of the year, gold ETFs tracked by Bloomberg have already posted inflows of 23.7 tonnes, the bank says. “Thanks to upbeat buying sentiment in the fourth quarter, gold ETFs registered inflows of nearly 80 tonnes in total in 2018,” Commerzbank says. “That said, inflows were nearly three times higher in 2017.” Holdings in gold ETFs stood at 2,210 tonnes by the end of 2018, Commerzbank says. “As compared with the gold holdings of central banks worldwide, gold ETFs thus account for the fifth-largest gold reserves,” the analysts report. “There were considerable regional differences last year; inflows into European gold ETFs (particularly in Germany and the U.K.) more than offset the outflows from North American ETFs.”

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

 

MKS: Gold Underpinned By Softer U.S. Dollar

Friday January 11, 2019 08:18

Gold turned higher during Asian-Pacific trade on Friday, buoyed by softer regional equity markets and softer U.S. dollar, says MKS (Switzerland) SA. Spot metal remains higher, gaining $6.20 to $1,292.20 an ounce as of 8:14 a.m. EST. The March dollex index was down 0.2 point to 94.92. “Thursday’s retracement from the top end of the recent range was shallower than what we have seen previously, with supportive interest evident toward $1,285 to restrict any further tests of $1,280,” MKS says. Bullion opened in Asian trade with a bid tone. “Interest accelerated once China opened, with the dollar turning sharply offered in early Shanghai, most notably against CNH as the pair collapsed to a 6.7444 low (six-month low) after opening above 6.79, while USD/CNY also moved sharply lower in tandem.” MKS says the on-shore premium in Shanghai remained “buoyant” above $8, further underpinning pricing. “The yellow metal still, however, remains firmly within the $1,280-$1,300 range, with participants seemingly comfortable to operate within these parameters in lieu of a breakout catalyst,” MKS says. Analysts added that global exchange-traded funds reported inflows of around 80,000 ounces on Thursday, predominately from U.S.-based funds.

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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