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Commerzbank: ETFs post gold inflows 23 days in a row

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Global exchange-traded funds have now accumulated gold for 23 business days in a row as “mountains of debt” accumulated by governments provide underlying support for the yellow metal, said Commerzbank analyst Daniel Briesemann. Gold ETFs tracked by Bloomberg posted inflows of 14.5 metric tons Wednesday, taking the total since the start of the month to 142 tons, Brisemann pointed out. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Governments and central banks continue to take steps to try to stabilize markets and prop up the economy during the COVID-19 pandemic. The European Central Bank is now accepting junk bonds, providing that they still had investment-grade status on April 7, Briesemann pointed out. “In addition, many governments are launching additional rescue packages worth billions and billions for their economies, causing the mountains of debt that have already been built up by the countries concerned to increase even further,” he said. “This makes gold attractive as a store of value, so it is no surprise that demand for gold remains robust.”

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