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BMO, Commerzbank: gold, silver ETF holdings down so far in 2020

Kitco News

Exchange-traded-fund holdings of gold and silver have declined so far in the new year, said Commerzbank and BMO Capital Markets. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Gold ETF holdings have declined for five straight days, BMO reported, adding that they are now down by around 5% from the start of the year. Commerzbank puts the decline so far in 2020 at “just shy of 14 tons.” Meanwhile, BMO said ETF silver holdings are down 1.1% over the same period, equivalent to 6.87 million ounces of outflows. “Despite this, gold prices continue to hold in well at ~$1,550/oz, though silver prices are now back to where they started the year,” BMO said. Commerzbank said silver ETFs tracked by Bloomberg have already decreased by 214 tons since the start of the year. “And yet robust investment demand is necessary in our opinion to absorb the physical supply surplus on the global silver market,” Commerzbank said. “The above-average inflows into silver ETFs that were seen last year are unlikely to be repeated this year.”

By Allen Sykora of Kitco News;


FXTM: gold, oil may have contrasting fortunes as global economy recovers

Wednesday January 15, 2020 08:10

There may be a contrast in the fortunes of gold and oil prices if the global economy improves, said Han Tan, market analyst at FXTM. The analyst said gold appears to be stabilizing around the mid-$1,550 area for now, with investors watching for details on a rollback on U.S. tariffs against China. “Bullion is expected to ease further if positive risk sentiment  continues,  while the global economy attempts to take advantage of thawing U.S.-China trade tensions,” the analyst said. Meanwhile, Brent crude is finding support around $64 a barrel, with reduced concerns about a U.S.-Iran conflict and investors mostly pricing in the signing of a “phase one” trade deal between the U.S. and China, the FXTM analyst continued. “However, key details from the agreement that could significantly alter the outlook on global demand may yet hold sway over oil’s performance going forward, with further indications over the reduction in tariffs pointing to more upside for oil prices.”

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