SP Angel: ETF Gold Holdings Rise Six Days In A row
Holdings of gold by exchange-traded funds has now risen for six days ina arrow, the longest run in nearly six months, says commodities brokerage SPAngel. The ETFs track the price of the commodity but trade like a stock, withmetal put into storage to back the shares. ETF holdings climbed to 2,107.2 tonnes on Tuesday, the mostsince Sept. 10, analysts report, citing data compiled by Bloomberg. “Gold isdrawing more attention...as tensions between the U.S. and Saudi Arabia over thedisappearance of journalist Jamal Khashoggi continue to simmer, while themarket continues to weigh the economic outlook and the U.S.-China trade war,”SP Angel says. The firm cites news reports quoting U.S. President Donald Trumpas saying it “would be bad” if Saudi Arabia’s crown price and king knew aboutthe disappearance of Khashoggi.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Hungarian, Polish Central Banks Increase Gold Holdings
Wednesday October 17, 2018 09:16
Central banks are increasing the amount of gold they hold for reserves,says Commerzbank. Analysts cite news that the Hungariancentral bank increased its gold reserves 10-fold to 31.5 tonnes in recentmonths. “This would mean gold accounts for 4.4% of Hungary’s total currencyreserves, which would put them on a par with the average of other central banksin the region,” Commerzbank says. “According to the central bank, the goldpurchases, which include the repatriation of gold reserves from London to Budapest,are intended to improve the safety of its holdings and the security of thenation’s wealth.” Hungary is the second European Union nation after Poland toreport recent gold purchases, as Poland bought around nine tonnes in July andAugust.
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero: Gold Has Supportive Influences Despite Slight Pullback
Wednesday October 17, 2018 09:16
Gold has eased slightly so far Wednesday but the metal has a number offactors offering support, says George Gero, managing director with RBC Wealth Management. As of 8:39 a.m. EDT, Comex December gold was 80 cents softer to$1,230.20 an ounce. Gero blames this on a stronger U.S. dollar and cautionahead of minutes from a Federal Open Market Committee meeting due out Wednesdayafternoon. Gero adds that there could be some volatility ahead of an approachingoptions expiration, since options in the money become futures positions thenext day and would require margin money, meaning traders either sell or buyahead of that. “Gold has many reasons to be steady and even rally,” Gero says,citing unfolding headlines between the U.S. and China over the death of ajournalist, midterm U.S. elections now only 20 days away, deficits, tradeissues and Brexit developments.
By Allen Sykoraof Kitco News; asykora@kitco.com
TDS: U.S. Midterm Elections May ImpactMarkets More Than Normal
Wednesday October 17, 2018 09:16
Early-November U.S. midterm elections forthe Senate and House of Representatives could have more impact on markets thannormal, says TD Securities. Based on polling, Congress may be divided.Democrats are expected to have a slight majority in the House, while theRepublicans are expected to maintain control of the Senate. “Political risk isnotoriously difficult for markets to predict,” TDS says. “This is in part dueto the increasing unreliability of polls to determine election outcomes, as wasthe case in the 2016 U.S. presidential election. There is also uncertaintyabout the policy outcome even if the results of the election are known.Historically elections have not had a significant market impact....However, wewouldn't be surprised by a larger reaction this time around given how much ofthe equity and rate move was driven by the Trump tax cuts in late 2017.” Thekey may be sentiment toward U.S. equities. “A divided government would mostlikely leave investors wondering how the U.S. would generate above-trend growthonce the fiscal support fades,” TDS says. “At the same time, the recent growthupgrades...argue the market has already priced in lots of good news for the yearahead. The result is that expectations are high, but a divided government maysow the seeds of uncertainty that leads to disappointment.”
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.