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Commerzbank: Central Banks Still Accumulating Gold

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Central banks are still adding gold to their reserves, says Commerzbank, citing data compiled by the International Monetary Fund. Some of the biggest buyers in March were Turkey (17 tonnes) and Kazakhstan (over five tonnes), Commerzbank says. By contrast, Argentina reduced its gold reserves by nearly seven tonnes tons, the bank points out. “Last week already saw the Chinese central bank report further gold purchases,” Commerzbank says. “Russia is also likely to have purchased more gold in March. The relevant data will be published shortly.”

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

 

TDS: Investors May Increase Allocation To Gold

Thursday April 18, 2019 10:18

TD Securities sees potential for investors to increase allocations to gold even though the yellow metal has not been able to benefit lately from a seemingly dovish Federal Reserve. “With many in the market dismayed and pondering what it will take to move gold past $1,350/oz, if an uber-dovish Fed can't do the job, we see interest growing from both the official sector and money managers in the cards,” TDS says. “Growing risks that central banks may again need to follow a nonconventional monetary policy path, when the economy heads south, [are] additional fodder for the view that private-asset allocations would follow the official sector in increasing their allocations to gold and precious metals. For now, prices remain stuck in recent ranges.”

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

 

Commerzbank: Swiss Data Show Asian Gold Demand Picks Up

Thursday April 18, 2019 10:18

Asian gold demand has picked up although it remains “at a low level” historically, says Commerzbank, citing data from the Swiss Federal Customs Administration. Switzerland exported 33.1 tonnes of gold to China and Hong Kong and 24.2 tonnes of gold to India in March. In each case, this was the most since November, Commerzbank says. “That said, India’s central bank had recently reported much higher Indian gold imports in March, which suggests that Switzerland is no longer the main supplier of gold to India,” Commerzbank says. “The same applies to China. Gold demand in China and India is probably somewhat better than the Swiss trade data indicate, in other words.”

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

 

BMO Looks For Gold To Remain In Range Of Last Two Years

Thursday April 18, 2019 10:18

Analysts with BMO Capital Markets look for gold to remain range-bound for the foreseeable future, with global exchange-traded-fund holdings remaining “relatively consistent” despite recent price weakness in the yellow metal. “With improving Chinese data, gold does look to be providing some of the funding source for the current risk-on rally,” BMO says. “The spot price has dropped to $1,272/oz, down over 5% from February’s high, and has now been lower for four consecutive weeks. However, while holdings in the largest gold ETF, SPDR Gold Shares, have dropped to a six-month low, overall gold holdings in physically backed ETFs have remained relatively consistent, suggesting macro asset allocators continue to maintain some exposure in the wider risk environment. This points to gold continuing to hold in the relatively tight range we have seen over the past couple of years.”

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