Gold and silver markets ended quieter trading sessions slightly higher Monday. Market participants are looking for new fundamental information to drive their markets. December Comex gold was last up $1.50 an ounce at $1,257.00. December Comex silver was last up $0.044 at $17.48 an ounce.
The price of gold rose on Monday, partly lifted by steady flows into exchange-traded funds (ETFs) and a dip in the dollar after touching seven-month highs.
Gold continues to be underpinned by exchange-traded-fund inflows but held back by a muscular U.S. dollar, says Commerzbank. Comex December gold futures are roughly steady around mid-morning in New York. “Admittedly, gold is finding support from moderate but continual ETF inflows; since the beginning of the month, holdings have been increased by 19 tonnes, which is more than in the whole of last month,” Commerzbank says. “However, gold is facing headwind on the one hand from the firm U.S. dollar, which appreciated for a time to a 2 ½-month high against the euro this morning. On the other hand, rising stock markets and higher bond yields are keeping the gold price in check. The yields on 10-year U.S. Treasuries have climbed to a 4 ½-month high, which makes gold less attractive as an alternative investment.”
Money Managers Cut Gold Bets as ETF Holdings Soar to 3-Year High
There’s a tussle in the gold market between money managers and exchange-traded fund investors.
Money managers and other large speculators are bailing as the rally that took futures to its best first half in almost four decades falters. They cut net-long positions the past two weeks by the most in data going back a decade. Investors in ETFs are taking the long view, pouring $605 million over the past week into funds backed by precious metals and helping keep holdings in gold ETFs tracked by Bloomberg at the highest since 2013.
Money managers cut their net-long positions by about 108,000 contracts in the two weeks through Oct. 11, the biggest such decline in data going to 2006, according to U.S. Commodity Futures Trading Commission data released Friday.
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