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Commerzbank: gold ETFs post outflows while platinum ETFs record inflows

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(Kitco News) - Gold-backed exchange-traded products posted outflows in recent days while those for platinum had inflows, said Commerzbank. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Gold ETFs recorded their third straight day of outflows on Monday, pointed out Commerzbank. “This is the longest phase of outflows since mid-March,” said analyst Carsten Fritsch. “It appears that institutional investors are switching from ETFs to shares given that the lion’s share of outflows were seen by the SPDR Gold Trust, which is used by this group of investors as an investment vehicle.” The gold ETF outflows occurred as the S&P 500 continued its rally Monday to move within 5% of the all-time high from February, Fritsch pointed out. However, he said, the main factor behind the stock-market rally – the massive increase in central bank liquidity – should also boost gold. “Whereas gold ETFs have seen outflows of late, the situation has been just the opposite for platinum ETFs; they registered inflows on five consecutive days recently,” Fritsch said. “The inflows total 37,400 ounces, including 13,000 ounces yesterday. This is one reason why the platinum price surged by more than 2% to $840 per troy ounce yesterday. Having said that, platinum ETFs have still seen outflows of a good 140,000 ounces on balance since the beginning of the year.”

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