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Commerzbank: Global ETF Gold Holdings Continue Decline

Kitco News

Outflows from global gold-backed exchange-traded funds occurred every day last week, says Commerzbank. “After gold ETFs registered inflows of a good 70 tonnes in January, outflows since the start of February have totaled nearly 20 tonnes,” the bank says. “Last year’s pattern appears to be repeating itself, in other words.” However, analysts say they expect good gold demand this week given the news backdrop. In particular, market participants will be following the U.S.-China trade talks with interest, another vote in the U.K. parliament on a Brexit deal, and the risk of another government shutdown in the U.S.

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

 

MKS: Return Of Chinese Market Has Limited Impact On Gold

Monday February 11, 2019 08:50

The return of the China, the world’s largest gold-consuming nation, from Lunar New Year holidays provided little price direction for gold during Asian hours, says MKS (Switzerland) S.A. “An initial bid tone on the Shanghai open was soon reversed, driven by a leg higher to USD/China, while the on-shore premium held underneath $8 for the majority of the session, considerably lower than what we were seeing leading into the New Year break ($10-$12 previously),” MKS says. “The firmer dollar brought about a test toward $1,310 during the lunch break; however, resting bids and a tempering of dollar strength in afternoon trade kept price action buoyant into European hours.”  Prices later softened further. MKS looks for support around $1,305 to $1,310 an ounce to provide a suitable base for a move higher once again. Resistance was put at $1,320 to $1,325. As of 8:27 a.m. EST, spot gold was down $8.40 for the day to $1,305.60 an ounce.

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

 

Commerzbank: Indian Jan. Gold Imports Up From Year Ago, Down From Dec.

Monday February 11, 2019 08:50

The most recent data from India show that the country’s gold imports rose last month on an annual basis but fell on a sequential basis, Commerzbank reports. Analysts cite provisional data from the Ministry of Finance showing that India imported 46 tonnes of gold in January despite high local prices. This was a volume gain of 64% year-on-year. “Traders attribute this to the wedding season that begins this month,” Commerzbank says. “However, the high prices – gold in Indian rupees climbed last week to a 5½-year high – appear to have slowed demand for gold as imports were 23% down on December.”

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

 

Money Managers Trim Bullish Gold Positions In Week To Jan. 8

Monday February 11, 2019 08:50

Money managers trimmed their net-long (bullish) position in gold futures to 32,471 futures contracts in the week to Jan. 8, the most recent CFTC data show. These accounts had been net long by 50,184 lots as of the end of 2018. Meanwhile, in silver, money managers upped their net long to 42,711 lots from 30,046 as of the end of 2018. The CFTC is behind on its weekly reporting due to the five-week U.S. government that began in late December. The CFTC has started issuing two reports per week – on Fridays and Tuesdays -- with the releases coming out in chronological order until the government gets caught up.

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

 

TD Securities: Platinum Prices At Risk Of More Price Weakness

Monday February 11, 2019 08:50

Platinum, the weakest of the precious metals, is at the risk of more losses if momentum-based selling from Commodity Trading Advisers occurs, says TD Securities. This threat exists despite gains in gold during recent months. “In contrast, CTAs trading platinum — who have just recently completed a round of short covering — could be whipsawed, as prices will need to close above $800/oz to avoid systematic algorithmic selling in response to firming downward momentum,” TDS says. “We suspect that discretionary managers sold into the trend-follower interest, suggesting that the most-hated precious metal still has some haters after all.” As of 8:27 a.m. EST, spot platinum as $8 softer to $790 an ounce.

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