Gold: ETF Gold Holdings Up Nearly 9 Tonnes Over Last Two Days
Global gold exchange-traded funds recorded inflows for the second straight day Wednesday, with inflows over the past two days totaling nearly 9 tonnes, Commerzbank says. “This has reversed more than half of the outflows previously seen this month,” analysts continue. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Further, speculative financial investors are likely to “jump back onto the bandwagon,” the bank says, pointing out that in the run-up to a Federal Reserve meeting last week, money managers in the gold futures market cut their net-long position to the lowest level since January, leaving this roughly 80% below last summer’s high. “There is ample upside potential, in other words,” Commerzbank says. |
