Why tracking ETF holdings is important
Investors looking to gauge gold’s price outlook should monitor flows into and out of gold ETFs. While outflows from gold ETFs led to a ~28% fall in gold prices in 2013, ETF inflows supported gold prices in 2016 and 2017. When sentiment turns, prices can easily go the other way, leading to a huge sell-off.
ETF holdings on a rise
Gold ETF holdings are on a rise. According to data compiled by Bloomberg, gold ETF holdings rose to a total of 2,250 tons on January 22, 2018, the highest level seen since May 2013. Gold’s rise in the new year has encouraged investors to pile into the metal. Concerns regarding US policies, which led to a government shutdown and weaker US dollar, have kept the metal buoyant in the new year. Investors may also be drawn to gold because inflation seems to be picking up the pace, as indicated by December 2017 data.
ETF holdings and gold price
The SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU) have risen almost 3% this month. An early-stage recovery in gold could prompt a full-fledged bull market. Concerns regarding peaking stock markets, rising inflation, and geopolitical issues could be key factors behind such a recovery.
A further recovery in prices would support stock prices of gold companies such as Barrick Gold (ABX), AngloGold Ashanti (AU), B2Gold (BTG), and Yamana Gold (AUY). Collectively, these four stocks form 13.7% of the VanEck Vectors Gold Miners ETF (GDX).
Boeing (BA), the world's largest aerospace company, will announce its 4Q17 financial results on January 31, 2018.
Investors looking to gauge gold’s price outlook should monitor flows into and out of gold ETFs. While outflows from gold ETFs led to a ~28% fall in gold prices in 2013, ETF inflows supported gold prices in 2016 and 2017. When sentiment turns, prices can easily go the other way, leading to a huge sell-off. Gold ETF […]
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.
According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.