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BMO: Exchange-Traded-Fund Gold Holdings Decline

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Holdings of gold by global exchange-traded funds fell last week, says BMO Capital Markets. Total known holdings slid by around 450,000 ounces to 70.96 million, BMO reports. Most gold ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. This gives investors exposure to gold prices without undertaking certain expenses such as storage and assaying of physical metal.

By Allen Sykora of Kitco News;


BBH: ‘It Will Be A Very Busy Week For The U.S.'

Monday April 29, 2019 09:48

Markets will have a heavy slate of important events to monitor in the U.S. this week, says Brown Brothers Harriman. “It will be a very busy week for the U.S.,” BBH says. “Highlights will be the FOMC [Federal Open Market Committee] meeting Wednesday and April jobs data Friday. These two events will be very important in terms of keeping the divergence narrative going [in the foreign-exchange market]. Last week, events outside the U.S. drove the divergence theme and this week, the focus will be on what happens inside the U.S. We remain bullish on the dollar but acknowledge scope for some corrective moves in the coming days. ” The FOMC begins a two-day meeting Tuesday, with a policy statement and press conference set for Wednesday. “There will not be any updates to the Fed forecasts or dot-plots [of individual policymakers’ views on interest rates],” BBH says. “We would be very surprised if anything dovish emerged from this meeting. The Fed should acknowledge the economy’s strong turnaround from the early soft patch. Of course, they will balance that with the need to see how Q2 develops.” Friday’s monthly U.S. employment report is likely to be the highlight of the week, BBH adds. Consensus forecasts call for around 185,000 new nonfarm jobs in March.

By Allen Sykora of Kitco News;


FXTM: Gold Needs Streak Of Weak U.S. Economic Reports To Reclaim $1,300

Monday April 29, 2019 09:48

Gold, on the defensive in recent weeks, may need a streak of weak U.S. economic reports to claim the $1,300-an-ounce level, says Han Tan, market analyst at FXTM. The metal is on the defensive early Monday, trading down $6.10 to $1,279.80 an ounce as of 9:44 a.m. EDT. Nevertheless, the metal could draw some support if investors were to take some money off the table in so-called risk assets if global economic data should be soft, the analyst says. “However, my view is that it might require a string of dismal economic indicators to bring gold back above the psychological $1,300 mark and reverse the bearish trend seen in bullion since late-March,” Tan concludes.

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