Gold ETPs experience fifth consecutive weekly outflow, totaling US$150mn. Gold traded in a tight range last week, between US$1,565oz and US$1,585oz, as a stronger US Dollar weighed on gold performance. Despite the on-going exodus from gold ETPs, physical demand from the official sector continues to be supportive with central banks from South Korea to Russia increasing their gold holdings. While gold might need a catalyst to break out of its current tight range, political paralysis from the US to Europe remains a real threat. With the price of gold having declined nearly 5% this year, the cost of insuring against those events looks particularly attractive.
Key events to watch this week: This week, industrial production indices for US, UK and India will be released and will be watched closely to assess the persistence of the global economic recovery. Strong numbers are likely to confirm the improving growth outlook, providing support to more cyclical commodities. US advanced retail sales and University of Michigan confidence index will also be monitored as consumer sector’s strength is fundamental for a full recovery of the US economy.
ETFS Physical Silver Shares (NYSEArca: SIVR)
