BMO: ETF Gold Holdings Rise Most Since Mid-February
Gold exchange-traded funds collectively justposted their largest daily accumulation of metal in roughly a month, says BMOCapital Markets. “Amid rising political friction and increased securityconcerns as the Washington Post suggested President Trump plans to remove hisnational security adviser, gold ETF holdings saw the largest one-day increasesince mid-February,” BMO says. A 180,000-ounce rise brings this year’s netpurchases to 801,000, BMO adds. “With geopolitical risk rising and inflationconcerns re-emerging, even with a strengthening dollar, gold could be enteringa period where it benefits from both macro and micro asset allocation gains,”BMO adds. Gold ETFs tradelike a stock but track the price of the metal, with metal put into storage toback the shares.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Safe-Haven Buying To Support Gold;Fed Meeting Limits Upside
Friday March 16, 2018 08:17
A number of geopolitical and political events mayprovide safe-haven support for gold, even though the approach of a Federal Reservemeeting may limit upside potential in the near term, says Commerzbank. Analysts suggest the recent price pullback hasbeen used as a buying opportunity, citing Bloomberg data showing that goldexchange-traded funds registered inflows of 5.6 tonnes Thursday, while silverETFs posted inflows of 36 tonnes. “Gold is also likely to remain in soliddemand as a safe haven, for the political crisis between the U.K. and Russia isworsening,” Commerzbank says. “In response to the British sanctions imposed inconnection with the poison attack on a former Russian spy in England, Russiaintends to expel British diplomats in its turn. Meanwhile, France, Germany andthe U.S. have rallied behind the U.K. and likewise hold Russia responsible forthe poison attack. In addition, the U.S. itself has imposed sanctions on Russia- for influencing the U.S. presidential election roughly 1 1/2 years ago.”Analysts also cite continuing “political chaos” in the U.S. administration,including news reports that President Donald Trump is about to sack NationalSecurity Advisor Herbert Raymond McMaster. “Such political uncertainties shouldshore up the gold price,” Commerzbank says. However, analysts point out thatthe market’s focus is shifting toward next week’s Fed meeting, with expectationsfor another rate hike. “This is likely to preclude any noticeable recovery ofthe gold price in the short term,” Commerzbank says. “Gold tends to showweakness in the run-up to Fed meetings.”
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Gold Headed For Weekly Loss Due ToStrong Dollar
Friday March 16, 2018 08:17
As of early Fridaymorning, gold was on track for weekly decline due to dollar strength aftercomments from Larry Kudlow, the new national economic adviser for PresidentDonald Trump, favoring the sale of gold and purchase of the U.S. dollar, pointsout commodities brokerage SP Angel. Analysts also cite market talk thatcontinuing strength in the U.S. economy is exerting downward pressure onbullion. As of 8:04 a.m. EDT, Comex April gold was down $3.50 for the week sofar to $1,320.40 an ounce. However, SP Angel also lists factors limiting gold’sdownside. “Precious-metal prices are receiving support over uncertainty overTrump’s administration and concerns about potential U.S.-led global trade war,”SP Angel says. “Growing U.S. political uncertainties following the recentdeparture of two key officials, former Secretary of State Rex Tillerson and topeconomic advisor Gary Cohn, from the Trump administration have also leftinvestors worried. Rising political tensions between the United Kingdom andRussia also drove some safe-haven investment, as Moscow said it would retaliateagainst London’s move to expel 23 Russian diplomats over a nerve toxic attackon a Russian former double agent in Britain.”
By Allen SykoraFor Kitco News
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asykora@kitco.com 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.