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Gold fell -0.2% on Monday and is nowbelow US$1,280/oz. US markets were closed Monday for Martin Luther King Day

However, appetite for the preciousmetal has most definitely returned to the market. Investors are continuing tobuy gold in the form of ETFs, according to Bloomberg, which estimates thatthere were 14.4 tonnes added to gold-backed exchange-traded funds on Friday.This marks the biggest advance since December 26, pushing the total holdings to2,253.20 tonnes — the highest since April 2013, says BMO Global CommoditiesResearch analyst Colin Hamilton. “Friday’s … addition was the highest singleday inflow thus far in 2019,” he writes on Monday. “We expect further inflowsthrough February, as we head towards a period in March with considerablemacroeconomic events with uncertain outcomes.” Central banks around the worldare also continuing to add gold to their reserves. “The latest IMF releaseshow[s] Kazakhstan, Brazil, India and Russia all having additional purchases inNovember,” Hamilton notes.

An interesting note from Kitco states that asno-deal Brexit fears intensify, Irish investors are turning to gold for safety,according to Ireland’s Merrion Vaults. With the Brexit’s March 29 deadline fastapproaching, investors are getting skittish and gold is looking more and morelike the solution out of this political uncertainty.

“They're worried about a significant devaluation insterling if there's a hard Brexit,” AFP quoted co-founder of Merrion VaultsSeamus Fahy as saying.

Merrion Vaults, an Irish owned and operated goldbrokerage and safe deposit facility in Dublin, saw a 70% jump in clients fromNorthern Ireland in 2018 as investors rushed to convert their cash into gold,Fahy said.

“Customers are taking money - physical money - outof the bank and they're buying gold bullion with us to store it, and it's ahedge,” Fahy noted.


 
22/01/2019 9:00:00 AM

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