'Massive ETF selling' is hurting gold price, say analysts

‘Massive ETF selling’ is hurting gold price, say analysts

Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! (Kitco News) A significant wave of selling in gold-backed exchange-traded funds (ETF) has been weighing on the precious metal, which continued to lose ground Thursday.

At the time of writing, December Comex gold futures were down nearly 1% on the day and trading at $1,857.20 an ounce.

"Gold came under pressure once again yesterday evening after having previously recouped earlier losses. This morning sees it trading at only $1,860 per troy ounce. Massive ETF selling is continuing to weigh on gold: gold ETFs tracked by Bloomberg registered further outflows of 10 tons yesterday," said Commerzbank analyst Carsten Fritsch.

Risk-on sentiment has been encouraging the ETF outflows, noted BMO Capital Markets commodities analyst Colin Hamilton."Gold ETF holdings continue to fall as potential vaccines […]

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