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BMO: ETFs Add To Gold Holdings But Post Silver Outflows

Kitco News

The amount of gold held by global exchange-traded funds is up so far in 2019, while silver ETFs have posted outflows, says BMO Capital Markets. “Gold held in physically backed ETFs has now risen by 1.1% YTD [year to date], reflecting the ongoing portfolio rotation towards gold,” BMO says. This represents 805,000 ounces of metal. “In contrast, the year to date has seen 4.57 million ounces of silver ETF outflows, including an 887koz outflow yesterday. With silver prices outperforming YTD, this does point to the potential return of retail buyers to the silver market.”

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

 

David Morgan: ‘Gold Will Do OK This Year’

Tuesday January 15, 2019 09:58

David Morgan, publisher of the Morgan Report, looks for gold to fare well in 2019. “It should be a pretty good year for us, but not spectacular,” Morgan says. “There are a lot more favorable aspects to the gold market than the last several years because of the stock market falling off, more uncertainty on…where we’re going, and the debt problems. Gold will do OK this year.”

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

 

Commerzbank: Brexit Vote Fueling U.K. Demand For Gold

Tuesday January 15, 2019 09:58

Gold demand in the U.K. is picking up ahead of a vote in Parliament later Tuesday that is expected to result in a defeat for Prime Minister Theresa May’s Brexit deal, says Commerzbank. “A large majority is expected to reject the deal, which should benefit gold as a safe haven,” Commerzbank says. “Because of the vote, the Royal Mint in Great Britain envisages high demand for gold coins in January, for example, reporting that coin sales since the start of the year are already 73% up year-on-year. Sales apparently soared the day after the vote was postponed in December.” However, the bank adds, the expected defeat of the Brexit deal does not necessarily mean that sterling will depreciate or that gold in sterling terms will rise. “Considerable price fluctuations will presumably ensue if the deal is either rejected with a very significant majority or if it is unexpectedly approved after all,” Commerzbank says.

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

 

TDS: Commodities May Move Higher Later In Year

Tuesday January 15, 2019 09:58

TD Securities looks for gold and industrial precious metals to eventually do better, along with the commodity complex as a whole. Analysts note that Federal Reserve Chair Jerome Powell has hinted at a more patient approach to any further monetary tightening. Further, China may become more aggressive in stimulus. Still, with further weakness in global economic data likely, TDS says it is cautious on commodities for now. “However, with the Fed turning pragmatic, the additional Chinese stimulus on the horizon and the wild card of a potential U.S.-China trade deal, we think the balance of risks have shifted to the upside,” TDS says. The market may be shifting to an approach of buying the dips in commodities, TDS continues. “Indeed, our general view that markets are overreacting to global growth worries leads us to favor commodities that have been beaten down,” TDS says. “Crude oil, copper, zinc and platinum all have good prospects given that they possess a strong underlying fundamental outlook.” Gold could pull back on easing of pessimistic global growth worries, TDS says. “However, we think the Fed will remain on pause, with only one or two hikes for 2019, as the U.S. continues to slow with the fiscal stimulus boost in the rearview,” TDS says. “A more accommodative Fed, flatter yield curve and deteriorating U.S. economic data later in the year should all conspire to see the yellow metal join the commodities complex on an upward trajectory later in the year.”

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