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Analysts: Gold ETF Holdings Jump, Positive For Year To Date

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Global holdings of gold by exchange-traded funds are positive for the year to date again after the largest inflow in three years for the world’s largest ETF, analysts reported. “As defensive positioning dominates, yesterday saw the biggest daily inflow into gold ETFs this year, with 609koz [690,000 ounces] added,” said BMO Capital Markets. “As a result, gold ETF holdings are back in positive territory YTD [year to date]. In our view, gold ETF flows play a strong role in near-term gold price formation, and has helped the move up towards ~$1,330/oz.” Commodities brokerage SP Angel Holdings reported that the world’s largest bullion-backed exchange-traded fund, SPDR Gold Shares, surged the most in almost three years, jumping 16.44 tonnes, or 2.2%.

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

 

Analysts: Gold ETF Holdings Jump, Positive For Year To Date

Tuesday June 4, 2019 09:10

INTL FCStone looks for gold to rise during June on more volatility in equities and the downward move in Treasury yields. Analysts pointed out that the metal was in a “sleepy range” for much of May before surging at the end on growing trade tensions. Equities weakened and yields have been falling, both supportive influences for the precious metal. “We expect gold to trade in a higher range during June as we think that the turbulence in U.S. equity markets and the downward push in yields still has room to run,” said INTL FCStone. “However, we think the Fed will likely be on hold at least through the summer.” Meanwhile, analysts said silver may be caught between competing forces. On the one hand, it often benefits from strength on gold. However, “its macro forces should pull it over,” INTL FCStone continued, pointing out that one of silver’s key uses is in semiconductors, a sector that the firm describes as “a front-line casualty in the U.S.-Chinese trade dispute.” INTL FCStone called for a range in gold of $1,300 to $1,370 and sees silver trading between $14.35 and $15.20 an ounce.

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

 

TDS: ‘CTAs Will Continue To Significantly Increase Their Length In Gold’

Tuesday June 4, 2019 09:10

TD Securities looks for Commodity Trading Advisers to be gold buyers. The metal rose sharply the last two trading days, although spot gold was down $2.70 to $1,322.10 an ounce as of 9:05 a.m. EDT. “In precious metals, we expect that CTAs will continue to significantly increase their length in gold, reflecting strengthening upside momentum signals as appetite for bullion diversifiers begins to catch up with the surging demand for U.S. Treasuries,” TDS said. “We've noted that historical pricing data from the 1980s to date confirms that real gold prices have performed well as a hedge against recession and equity tail risks, which should continue to see investors' interest grow on the horizon.” TDS added that a growing call for the Federal Reserve to cut interest rates, particularly following St. Louis Fed President James Bullard's dovish commentary, will likely keep traders' eyes on Fedspeak Tuesday, “although our macro strategists do not anticipate commentary on the members' current outlook on monetary policy.”

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

 

SP Angel: Gold Hanging Onto Most Of Gains After Safe-Haven Buying

Tuesday June 4, 2019 09:10

Gold is holding onto most of its biggest gain in more than four months on growing demand for safe havens amid escalating U.S. trade threats and their impact on global growth, said commodities brokerage SP Angel. Analysts also reported that expectations are building for the Federal Reserve to cut interest rates this year to contain the fallout. “The swing toward the traditional haven came as gold prices surged above $1,300 an ounce to hit the highest since February,” SP Angel said. As of 9:05 a.m. EDT, spot gold was $2.70 lower to $1,322.10 an ounce.

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