Gold-backed exchange traded funds post outflows so far in February
NEW YORK (Scrap Register): Gold-backed exchange traded funds have posted an outflow so far this month, said Commerzbank.
“Though the yellow precious metal is still holding its own above the psychologically important $1,300-per-troy-ounce mark, it is unable to recover significantly from its decline of recent days,” Commerzbank added.
“The firmer U.S. dollar is presumably precluding higher prices. There have also been noticeable ETF outflows for some days now; holdings in the gold ETFs tracked by Bloomberg have been reduced by a good 17 tonnes since the start of the month,” Commerzbank noted.
Still, Commerzbank said gold should stay in “good demand as an attractive alternative investment and a safe haven, partly because there are after all numerous political risks.”
The decline so far in February comes after global ETF gold holdings rose in January for fourth straight month, this time by 71.9 tons, according to World Gold Council data earlier this week.