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Gold remains flat as ETF buying picks up

Gold has been boosted by recent ETF buying according to UBS's Teves.

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Gold was trading US$3 lower at US$1,101 on Monday.

Gold was flat on Monday after making a strong start to the year last week on the back of geopolitical concerns in Asia and the Middle East.

Gold has held up well despite strong payrolls data on Friday which came in at 292,000, far ahead of market expectations.

Bullion trader Marex Spectron said: “The fact that non-farm payrolls were so strong made the resilience even more impressive.”

Overnight there has been further weakness in stock markets, oil and China with gold once again the beneficiary, managing to stay above US$1,100.

Joni Teves, precious metal analyst at UBS, said: “In addition to support from physical buyers, gold has also been helped of late by sizeable ETF buying.

So far this year, ETF flows are positive at 484,000 ounces, with all of the buying occurring on Thursday and Friday last week.

“It's still early days and it would be premature to identify a trend in ETFs at this point, Teves said, “but developments so far are encouraging and a continuation of net inflows in the weeks ahead could be an indicator that investors are starting to become friendlier to gold,” she added.

Gold was trading US$3 lower at US$1,101 on Monday.

Unlike gold, however, silver ETFs saw outflows every day last week and have totalled almost 140 tons since the beginning of the year. Silver ticked up 0.6% to US$14.03.

Elsewhere platinum eased US$24, or 2.8%, to US$854.

 

Major Movers

Randgold Resources up 9p to 4,410p

Fresnillo flat at 693p

Anglo American up 11p to 240p

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