Commerzbank: ETF gold holdings still rising
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.