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Interest in gold is back as markets eye U.S. stimulus talks: Commerzbank

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(Kitco News) There is rising investor interest in gold as markets eye progress of the U.S. stimulus talks this week, says Commerzbank. "Talks between Republicans and Democrats on the next round of stimulus measures in the U.S. are expected to continue. After talks with Treasury Secretary Mnuchin on Friday, U.S. House of Representatives spokeswoman Pelosi expressed optimism that progress will be made," writes Commerzbank analyst Daniel Briesemann. Gold-backed ETFs are also back on investors' radars, seeing a jump in demand. "As in the days before, ETF investors took hold of gold on Friday and bought almost three tons. For the whole of last week, inflows amounted to 18.5 tons. This means that all the outflows recorded in the days before have been made up and the holdings of gold ETFs tracked by Bloomberg have almost reached their record level again," adds Briesemann. This week kicked off with the rising risk-on sentiment, which is good for gold that has been trading in tandem with the stock market last week. "Apparently, the uncertainty caused by U.S. President Trump's illness has subsided after his team of doctors sees progress in his recovery and Trump may be released from hospital today. Positive stock markets in Asia and Europe also point to a renewed increase in risk appetite among market participants," notes Briesemann.

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