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Commerzbank: ETF gold holdings rise 16 tons so far in 2020

Kitco News

Holdings of gold by exchange-traded funds have risen by more than 10 tons so far in 2020, said Commerzbank. The 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 having to take on costs such as assaying and storage. As of 8:58 a.m. EST, spot gold was down 80 cents for the day to $1,561.60 an ounce. “In our opinion, the price should be well supported at roughly its current level, as ETF inflows also suggest,” Commerzbank said. “Gold ETFs have seen inflows of 10 tons so far this week, and of over 16 tons since the start of the year.”

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

 

RBC’s Gero: Comex gold remains range-bound

Friday January 24, 2020 09:06

Gold remains range-bound between roughly $1,540 and $1,580 an ounce, awaiting further U.S. impeachment and political headlines, as well as geopolitical news, said George Gero, managing director with RBC Wealth Management. As of 8:47 a.m. EST, Comex February gold was right in the middle of that trading band, down $5.20 to $1,560.20 an ounce. “The average  price of gold is a barometer of  political and economic well-being,” Gero said. “Traders, however, view technicals and day-to-day headlines, so we see fluctuations and many upswings and downdrafts.” Gero noted that buying ahead of the Chinese New Year, one of the important seasonal time periods for gold, has now passed, as the holiday begins this weekend.

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

 

BBH: major negative factors for U.S. economy ‘have receded’

Friday January 24, 2020 09:06

The major negative factors for the U.S. economy have receded, said Brown Brothers Harriman. The U.S. economy is in its longest expansion ever. Much of the focus of financial markets this week has been a coronavirus outbreak in China and its potential impact on the global economy. “this week's spell of virus-driven nervousness led to some re-pricing of the implied probability of a Fed cut, which still seems exaggerated to us,” BBH said. “According to the Bloomberg model, there is a 60% chance of a cut by the September meeting. We understand that the virus poses a new tail risk, which should be taken into account. But on balance, we still think that the U.S. economy is holding up well and that most of the big negative factors have receded.” 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.