Gold ETF Outflows Slow Down In December
Outflows from gold exchange-traded funds are 114,000 ounces so far in December, with the pace having slowed considerably from the last three months, says UBS. “If the current average rate of change in gold ETFs is maintained for the rest of the month, selling should be limited to about a quarter of average monthly liquidations so far in Q4,” the bank says. “Interestingly, gold ETFs are up so far this week, and if the trend continues today and tomorrow, this will be the first weekly net inflow since September.” Meanwhile, the bank notes that while much of the strength lately has been on short covering, longs have been tentatively building positions. For now, gold has run into resistance around the 100-day moving average at $1,235.23, UBS says. “The reality is that in spite of gold's recent price performance, little has changed in the macro backdrop and outlook, which suggests that a new catalyst is needed to encourage longs to continue adding to positions and sustain the move higher,” UBS says. |
