Make Kitco Your Homepage

Commerzbank: ETF gold holdings still rising

Kitco News

Gold is on the defensive early Tuesday, but nevertheless holdings by gold-backed exchange-traded funds show investors still want exposure to the metal, said Commerzbank analyst Daniel Briesemann. Oil prices, base metals, the U.S. dollar, equities and Treasury yields are all higher so far Tuesday. The result is weakness in gold, Briesemann said. Spot metal was down $12.90 to $1,266.70 as of 8:26 a.m. EDT. “We do not expect the weakness to last very long,” Briesemann said. “The appetite of market participants for gold still seems to be considerable, as evidenced by inflows of over 47 tons into gold ETFs in the last two days of trading.” Most gold ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

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.