https://www.engineeringnews.co.za
Gold
Gold
gold

ETF buyers return to precious metals as Trump turmoil sows angst

31st January 2017

By: Bloomberg

  

Font size: - +

NEW YORK – Add the flap over US immigration policy to investor concerns that are reigniting demand for precious metals as havens.

Long-only exchange-traded funds backed by precious metals have attracted about $200-million this month, on course for the first monthly inflow since October, data compiled by Bloomberg Intelligence showed. Almost $1.6-billion poured into the ten precious-metals ETFs that have attracted the most money in January, with Frankfurt-listed Xetra-Gold ETF drawing in more than any other commodity ETF.

Gold futures are headed for the first monthly gain since September as uncertainty over the impact of President Donald Trump’s policies on trade and global growth start to outweigh concerns about potential interest rate increases in the US The dollar is poised for a decline in January against a basket of ten currencies.

“After a week in office, Donald Trump is keeping investors on their toes already with his executive order over the weekend impacting the dollar,” said Naeem Aslam, chief market analyst at Think Markets UK .

Gold futures for April delivery gained 0.4% to settle at $1 196 an ounce at 1:52 p.m. on the Comex in New York. The metal is up about 3.8% in January, after falling 13% over the previous three months.

On Jan. 27, Trump issued an immigration clampdown, opening a rift with some US lawmakers and prompting key American allies to distance themselves from the US president. The move underscores uncertainty stemming from Trump’s “America first” rhetoric and plans to scrap regional trade deals, which are seen by some investors as a risk to global economic growth. Investors have also been concerned over the fallout from Britain’s plans to exit the European Union and the potential split of the trade bloc.
Equities Slip

Global equities fell on Monday, with US stocks heading for the biggest decline since before the presidential election.

Not all precious-metals funds have fared well this month. Some $863.9-million has exited SPDR Gold Shares, the largest commodity ETF. That’s still only about half of the money that flowed into the ten top-drawing precious metals ETFs during that time, though.

VanEck Vectors Gold Miners ETF, the largest such fund tracking raw-materials equities, has attracted $165-million this month, as share prices rallied. A gauge of 16 senior gold producers tracked by Bloomberg Intelligence has climbed 9.2% gain this month. Kinross Gold Corp., Goldcorp Inc. and Barrick Gold Corp. are among the biggest gainers.

Xetra-Gold ETF lured $793.4-million this month through Jan. 27, data compiled by Bloomberg show. Source Bloomberg Commodity ETF attracted $360-million since its inception on Jan. 12, boosting assets by 68%.

Edited by Bloomberg

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.069 0.118s - 158pq - 2rq
Subscribe Now