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Gold slumps to one-month low, but investors start buying gold ETFs

Published 11/09/2018, 06:43 PM
© Reuters.  Gold slumps to one-month low, but investors start buying gold ETFs
STT
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GLD
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DGP
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DZZ
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GLL
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IAU
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SGOL
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UGL
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PHYS
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DGL
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DGZ
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UBG
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UGLDF
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DGLDF
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OUNZ
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GLDI
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GLDW
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BAR
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IAUF
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GLDM
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AAAU
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  • Comex December gold fell 1.4% in today's trade to settle at $1,208.60/oz., ending down 2% for the week to its lowest finish since Oct. 10.
  • The Fed held interest rates steady yesterday but is widely expected to raise rates in December, which "caused the dollar to strengthen and the outlook for higher U.S. interest rates has gold on the defense," according to RJO Futures strategist Bob Haberkorn.
  • But in a potentially bullish shift of investor sentiment, ETFs backed by gold increased their holdings by $1B in October, adding 16.5 metric tons to raise holdings up to 2,346 metric tons for the first monthly gain in four months, according to the World Gold Council.
  • The numbers "confirm our view that investors are once again turning to gold as a defensive asset, offering some protection against the unexpected, whether these tail risks are macroeconomic or geopolitical in nature," says George Milling-Stanley, head of gold strategy at State Street (NYSE:STT) Global Advisors.
  • ETFs: GLD, IAU, PHYS, SGOL, UGLD, UGL, DGP, GLL, GTU, GLDI, OUNZ, DZZ, DGL, DGLD, DGZ, GYEN, BAR, GEUR, GLDW, GHS, UBG, QGLDX, GHE, AAAU, GLDM, IAUF
  • Now read: Gold Is Hanging In There - An Impressive Performance In The Face Of Adversity


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