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Standard Chartered: Gold Better Supported Above $1,300 Amid Rate-Cut Expectations

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Holdings of gold by global exchange-traded funds have jumped by 52 tonnes so far this month, reflecting good demand for gold, Commerzbank said. 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. “Gold remains in good demand at present -- the gold ETFs tracked by Bloomberg saw inflows of almost nine tonnes yesterday, another sizeable inflow on top of those already registered in the last two weeks,” Commerzbank said. “ETF holdings have meanwhile been topped up by over 52 tonnes since the start of the month. This is presumably one of the reasons why gold is inching towards $1,340 per troy ounce this morning.”

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

 

Commerzbank: ETF Gold Holdings Rise 52 Tonnes So Far In June

Thursday June 13, 2019 09:28

Holdings of gold by global exchange-traded funds have jumped by 52 tonnes so far this month, reflecting good demand for gold, Commerzbank said. 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. “Gold remains in good demand at present -- the gold ETFs tracked by Bloomberg saw inflows of almost nine tonnes yesterday, another sizeable inflow on top of those already registered in the last two weeks,” Commerzbank said. “ETF holdings have meanwhile been topped up by over 52 tonnes since the start of the month. This is presumably one of the reasons why gold is inching towards $1,340 per troy ounce this morning.”

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

 

TDS: Soft U.S. Inflation Data Supportive For Gold

Thursday June 13, 2019 09:28

Soft U.S. inflation data on Wednesday will make it easier for the Federal Reserve to lower interest rates, analysts at TD Securities said. This is generally seen as a supportive influence for gold since lower rates reduce the so-called opportunity cost, or lost income, from holding gold instead of a yield-bearing asset, as well as undermining the U.S. dollar. “Gold continues to hold strong at the upper bound of the range, as weaker inflation data helps to grow the market's conviction that the Fed will cut rates,” TDS said. “While the weaker data and dovish Fed narrative will do well to keep the yellow metal elevated, any disappointment from the Fed in terms of meeting the markets implied dovishness in June/July could potentially be another catalyst for gold should equity markets panic.” 

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

 

Analysts: Platinum Industry Facing Potential Labor Unrest In South Africa

Thursday June 13, 2019 09:28

There is a threat of a strike in the South African mining sector for platinum group metals, analysts said. “South African platinum producers are bracing for significant wage demands as workers eye windfall earnings from a rally in prices, as the Association of Mineworkers and Construction Union is meeting this week across the Platinum Belt,” said commodities brokerage SP Angel. “The largest and most militant labor organization in the industry is aware that higher palladium and rhodium prices, plus a weaker rand, have boosted miners’ profits and will make ‘substantial’ demands in the coming weeks.” Commerzbank said the demands “are likely to be more than the mining companies can afford.” In 2016, SP Angel pointed out, the union accepted a 12.5% wage increase after initially demanding 47%. Two years before that, the AMCU led the industry’s longest-ever strike. “The platinum and palladium market may soon be facing a strike in South Africa,” Commerzbank said.

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