The last few weeks have been a roller coaster ride for gold. A breathtaking rally to new highs followed by a bone-crunching decline in double quick time. The volatility could spook an average investor. But as Colonel Hannibal Smith (Liam Neeson) often advocates in the Hollywood blockbuster The A-Team – “no matter how random things may appear, there is always a plan!” Nothing happens in financial markets without a reason, and the reason is always financial. The wild ride in gold is going as per plan. The plan is to shake off weak hands and accumulate gold on declines.
ETFs
Gold Rally Sputters With Bets on Vaccine, Economies Denting ETFs
The rally in gold, which surged to an all-time high two weeks ago, is showing signs of losing steam with hopes for a coronavirus treatment and signs of improving economies undercutting the metal’s appeal as a haven.
Gold Backed ETFs Gained Globally in 2018, Even with North America Outflows
Gold-backed exchange-traded funds (ETFs) worldwide registered net inflows of $3.4 billion, a 3 percent annual rise and increased by 69 tonnes to 2,440 tonnes in the year.
EIA Data Shows 8 Million Barrel Build in Crude Inventory – Gold Silver Reports
U.S. crude oil refinery inputs averaged 16.6 million barrels per day during the week ending September 28, 2018, which was 77,000 barrels per day more than the previous week’s average. Refineries operated at 90.4% of their operable capacity last week. Gasoline production increased last week, averaging 10.0 million barrels per day. Distillate fuel production increased last week, averaging 5.0 million barrels per day.
Singapore/London: Gold is Hitting New Milestones of Misery, Gold Investors ‘Give Up Hope’ as Biggest Short in History Builds – Gold Silver Reports
Gold Silver Reports (GSR) – Exchange-traded funds tracking the metal have bled assets for 13 consecutive weeks, the longest run in five years, investors have placed the biggest gold short on record, and bullion’s chief foe—a strong dollar—is extending its market grip.
Goldman Sachs Sees Equity Volatility Spillover
Gold Silver Reports (GSR) – Goldman Sachs Sees Equity Volatility Spillover — Strategists led by John Marshall observed that “a large number” of S&P 500 hedges expired over the past three weeks, leaving the average investor more exposed to stock swings. Meanwhile, the Cboe Volatility Index almost doubled in the first quarter as concerns over global trade tensions and the Federal Reserve’s monetary policy stirred up market turbulence. The options gauge, known as VIX, jumped 20 percent to 23.89 as of 12:11 p.m. in New York.
Why is India’s interest in gold ETFs falling?
Gold Silver Reports – With equity markets rising (the S&P BSE Sensex has returned 15% in the last 2 years and 26% so far this year), it’s no wonder that other assets—especially gold—have taken a back seat. According to the Association of Mutual Funds of India (Amfi), equity funds have seen net inflows (more money came in than went out) of Rs1.78 trillion so far in 2017.
Gold May Not Be Bitcoin, But Miners Can Still Make You Money
Gold Silver Reports – Gold and silver prices haven’t had the best year when compared to industrial metals, and the outlook for next year looks muted at best.
Gold Market, Global Tensions Prompt a Surge in ETFs
Gold Silver Reports – Gold Market, Global Tensions Prompt a Surge in ETFs – Gold prices may have had a lousy month, dropping by the most this year on a resurgent dollar, but holdings in exchange-traded funds have jumped, with the worldwide total rising to the highest level since November.
Gold Bulls Look Past Fed Rate Hike, Load Up on ETFs
Gold Silver Reports — Gold bulls who bet that the U.S. Federal Reserve may take a more cautious approach in monetary tightening appear to be on the money, judging by the latest batch of disappointing economic data.