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Barclays: Commodity Assets Under Management Fall In 2018

Kitco News

Global assets under management (AUM) in commodities, including precious metals, fell in 2018 largely due to lower prices, says Barclays.  AUM declined to $282 billion from $310 billion at the end of 2017, even though investment flows were a positive $2.2 billion for 2018, the bank reports. AUM in precious metals fell $3.2 billion to $128 billion in 2018. AUM for industrial metals and energy assets also fell, although agriculture bucked the trend and AUM increased slightly, Barclays says. “These changes came amid [a] generally weak commodity price performance,” the British bank continues, noting that the Bloomberg Commodity Index fell by 13% in 2018.

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

 

FXTM: Gold Eases But Longer-Term Prospects Good

Wednesday February 6, 2019 09:10

Gold is marginally softer due to a stronger U.S. dollar, but longer-term prospects for the precious metal are favorable, says Lukman Otunuga, research analyst at FXTM. As of 8:43 a.m. EST, spot gold was down $1.40 to $1,313.40 an ounce. The March dollar index was 0.123 point higher to 95.940. “While the precious metal is seen extending losses in the near term, bulls still remain in control in the medium to longer term,” Otunuga says. “For as long as global growth fears weigh on market sentiment and expectations mount over the Fed taking a break on rate hikes this year, gold will continue shining.” Based on the technical charts, the analyst says gold has the potential to rebound towards $1,320 if $1,308 proves to be reliable support. “A breakdown below $1,308 is likely to invite a decline back towards the psychological $1,300 level,” Otunuga concludes.

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

 

Metals Focus: Palladium, Rhodium Price Uptrends To Continue

Wednesday February 6, 2019 09:10

The consultancy Metals Focus looks for the palladium and rhodium markets to maintain their longer-term uptrends despite concerns about slowing growth in auto sales in key markets. The main industrial use for the metals is automotive catalytic converters. January data on U.S. passenger-car sales were considered disappointing, and the outlook for sales in China was considered “challenging” after a decline in 2018, Metals Focus says. In the near term, poor data may affect palladium and rhodium prices by curbing investor enthusiasm, the consultancy says. “However, we believe that tight physical market conditions will remain in place in the medium term for both,” Metals Focus continues. Analysts say they still look for the global vehicle market to grow in 2019, even if by a small amount. Further, they point out that tightening emissions standards in the U.S. and China will mean increased loadings of the metals. Despite higher prices, there has not been increased output for the metals due to near-term restraints on mine production, Metals focus says. “As such, we are confident that both metals will see deficits for yet another year in 2019, which will in turn further draw on above-ground inventories,” Metals Focus says. “Ultimately, all this points to the uptrend that both metals have seen in recent years being likely to remain in place for the foreseeable future. In the near term, corrections can of course not be ruled out…. In the longer term, as long as market deficits continue, so will the boost to palladium and rhodium prices.”

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