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Commerzbank: Gold ETFs Post Biggest Inflow In Four Weeks

Kitco News

Gold exchange-traded funds registered their biggest daily inflow in almost four weeks Wednesday, said Commerzbank. Holdings of gold by global ETFs rose by 7.4 tonnes. 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; asykora@kitco.com

 

TDS: CTAs 'Remain Comfortable With Their Position' In Gold

Thursday July 18, 2019 09:42

Expectations for central bankers to loosen monetary policy, coupled with worries about corporate earnings amid a trade war, are supportive influences for gold, said TD Securities. “With dovish central-bank expectations baked into the gold cake, CTAs [Commodity Trading Advisers] remain comfortable with their position as prices are likely to ebb and flow within the range near $1,400/oz on equity performance, Fedspeak and economic data,” TDS said. “Indeed, with earnings season kicking off, any contraction in corporate profits would represent a second consecutive quarter of contraction and the first earnings recession since 2016.” Worries that the trade wars have “taken a bite into corporate earnings” could ding stocks, helping gold bounce higher, TDS added.

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

 

FXTM: Investors May Seek Gold When Bonds No Longer Provide 'Reasonable Return'

Tuesday July 18, 2019 09:45

Investors may turn to gold as bond yields keep getting lower, said Hussein Sayed, chief market strategist at FXTM. Gold was a major beneficiary from Wednesday’s drop in equity prices and bond yields, the strategist said, with the metal making another attempt to retest resistance around $1,430. “While many investors don’t like gold as an asset class given that it doesn’t provide any yield, at one point it may be a necessary portfolio diversifier especially when bonds of developed economies no longer provide a reasonable return,” Sayed said. “Investors should keep an eye on $1,439 as a break above would likely bring sideline investors to join the bull run.”

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