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Spot Gold (Ticker: XAUUSD)
Spot Silver (Ticker: XAGUSD)
Gold/silver ratio (Ticker: XAUXAG
Spot Gold (XAUUSD) continues to trade sideways within a well-defined range between $1675 and $1765, and not surprisingly being the most interest rate and dollar sensitive commodity, the direction has for a while now been dictated by the ebb and flow of movements in U.S. Treasury yields and the dollar. Adding to this the loss of momentum which for several months has resulted in lower participation from investors in both futures and exchange-traded funds.
Total holdings in bullion-backed exchange-traded funds have seen almost daily reductions since January, and from the peak last October holdings are currently down by 10%, a reduction of this magnitude was last seen in Q4 2016, just before the price bottomed out and embarked on the journey that took it to $2075/oz last August.
However, while we are waiting for a breakout of the current range – up or down - the outflows from ETF’s has been grinding to a halt, an indication that most of the selling at current levels has now been done. Not least due to strong demand from central banks, which according to the World Gold Council saw March buying from India and Hungary to the tune of 223 tons, a figure that almost off-set the total year-to-date reduction in total holdings of 229 tons.