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Tag: Precious metal markets

  • ETFs are on pace to break record annual inflows, but this wild card could change it all

    ETFs are on pace to break record annual inflows, but this wild card could change it all

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    Exchange-traded fund inflows have already topped monthly records in 2024, and managers think inflows could see an impact from the money market fund boom before year-end.

    “With that $6 trillion plus parked in money market funds, I do think that is really the biggest wild card for the remainder of the year,” Nate Geraci, president of The ETF Store, told CNBC’s “ETF Edge” this week. “Whether it be flows into REIT ETFs or just the broader ETF market, that’s going to be a real potential catalyst here to watch.”

    Total assets in money market funds set a new high of $6.24 trillion this past week, according to the Investment Company Institute. Assets have hit peak levels this year as investors wait for a Federal Reserve rate cut.

    “If that yield comes down, the return on money market funds should come down as well,” said State Street Global Advisors’ Matt Bartolini in the same interview. “So as rates fall, we should expect to see some of that capital that has been on the sidelines in cash when cash was sort of cool again, start to go back into the marketplace.”

    Bartolini, the firm’s head of SPDR Americas Research, sees that money moving into stocks, other higher-yielding areas of the fixed income marketplace and parts of the ETF market.

    “I think one of the areas that I think is probably going to pick up a little bit more is around gold ETFs,” Bartolini added. “They’ve had about 2.2 billion of inflows the last three months, really strong close last year. So I think the future is still bright for the overall industry.”

    Meanwhile, Geraci expects large, megacap ETFs to benefit. He also thinks the transition could be promising for ETF inflow levels as they approach 2021 records of $909 billion.

    “Assuming stocks don’t experience a massive pullback, I think investors will continue to allocate here, and ETF inflows can break that record,” he said.

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  • Case for gold fever: NewEdge Wealth sees record rush intensifying

    Case for gold fever: NewEdge Wealth sees record rush intensifying

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    The record gold rush may intensify into year-end.

    According to NewEdge Wealth’s Ben Emons, the final month of the year typically creates a bigger appetite for the yellow metal.

    “It’s been very consistent every December. It’s been a pretty strong performance for gold — especially when there is a rally in the stock market in November,” the firm’s head of fixed income told CNBC’s “Fast Money” on Tuesday.

    Gold settled at a new record high Friday. It closed the day up almost 2%, at $2,089.70 an ounce.

    Emons listed the economic backdrop and geopolitical backdrop as additional positive catalysts for gold.

    “There’s uncertainty next year. We have an election. We don’t know what’s going to happen. We get a recession maybe, maybe not,” said Emons. “At the same time, gold rallies when there’s this risk-on feel in the markets, and that’s really when real rates and interest rates are declining. This gives the gold a really good push for the breakout.”

    In a note to clients this week, Emons wrote that months for both gold and stocks are a “rare combo.” Gold gained 3% while the Dow and S&P 500 were both up almost 9% in November.

    “[It] tends to occur when markets price in major easing cycles,” he wrote. “Currently, that is going on in a mild manner, which puts the spotlight on the seasonals of gold.”

    Emons suggests the strength will continue into next year.

    “Central banks are again outbidding gold against dwindling supply, likely setting up the metal for a major breakthrough towards 2100 … lifting boats for laggards like utilities have a shot to claim market leadership by early 2024,” Emons also wrote.

    “Fast Money” trader Guy Adami also sees gold shining due to the dollar‘s recent performance.

    “If rates continue to go lower, the dollar will go lower. That will be a tailwind for gold,” he said. “Gold is within a whisper of having a huge breakout to the upside.”

    As of Friday’s close, gold is up more than 14% so far this year.

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  • Why substituting cryptocurrency for gold exposure may be a costly mistake

    Why substituting cryptocurrency for gold exposure may be a costly mistake

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    Viewing cryptocurrency as “digital gold” may be a mistake.

    State Street Global Advisors’ George Milling-Stanley, whose firm runs the world’s largest gold exchange-traded fund, believes cryptocurrency is no substitute for the real thing due its vulnerability to big losses.

    “Volatility does not back up any claims for crypto to be a long-term strategic asset as a competitor to gold,” the firm’s chief gold strategist told CNBC’s “ETF Edge” earlier this week.

    Milling-Stanley’s firm is behind SPDR Gold Shares, the world’s largest physically backed gold ETF. It has a total asset value of more than $57 billion as of last week, according to the company’s website. The ETF is up 7% year to date as of Friday’s market close.

    Milling-Stanley believes gold’s 6,000-year history as a monetary asset serves as a significant sample basis to understand the benefits of investing in gold.

    “Gold is a hedge against inflation. Gold’s a hedge against potential weakness in the equity market. Gold’s a hedge against potential weakness in the dollar,” he noted. “To me, historically, the promise of gold for investors has … overtime [helped] to enhance the returns of a properly balanced portfolio.”

    The precious metal is having trouble this year staying above the $2,000 an ounce mark. But Milling-Stanley believes the economic backdrop bodes well for gold — recession or not.

    “It’s pretty clear that we’re liable to be in a period of slow growth. … Historically, gold has always done well during periods of slower growth,” Milling-Stanley said.

    Milling-Stanley also believes the relaxation of Covid-19 restrictions in China should spark more demand for gold. It’s known as the world’s largest consumer of gold jewelry behind India, according to the World Gold Council.

    “It’s not just China and India. It’s Vietnam, it’s Indonesia, it’s Thailand and Korea. It’s a whole raft of Asian countries that are really the main drivers of gold jewelry demand,” Milling-Stanley said.

    Gold settled at $1,960.47 an ounce Friday. The commodity is up more than 7% so far this year.

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  • Closing prices for crude oil, gold and other commodities

    Closing prices for crude oil, gold and other commodities

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    Benchmark U.S. crude oil for January delivery fell $3.05 to $76.93 a barrel Monday. Brent crude for February delivery fell $2.89 to $82.68 a barrel.

    Wholesale gasoline for January delivery fell 8 cents to $2.20 a gallon. January heating oil fell 17 cents to $3 a gallon. January natural gas fell 70 cents to $5.58 per 1,000 cubic feet.

    Gold for February delivery fell $28.30 to $1,781.30 an ounce. Silver for March delivery fell 83 cents to $22.42 an ounce and March copper fell 5 cents to $3.80 a pound.

    The dollar rose to 136.69 Japanese yen from 134.44 yen. The euro fell to $1.0493 from $1.0534.

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  • Closing prices for crude oil, gold and other commodities

    Closing prices for crude oil, gold and other commodities

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    Benchmark U.S. crude oil for January delivery rose 96 cents to $77.24 a barrel Monday. Brent crude for January delivery fell 44 cents to $83.19 a barrel.

    Wholesale gasoline for December delivery was unchanged at $2.33 a gallon. December heating oil fell 2 cents to $3.22 a gallon. December natural gas fell 31 cents to $6.71 per 1,000 cubic feet.

    Gold for February delivery fell $13.50 to $1,755.30 an ounce. Silver for March delivery fell 48 cents $21.13 an ounce and March copper fell 1 cent to $3.62 a pound.

    The dollar fell to 138.89 Japanese yen from 139.05 yen. The euro fell to $1.0339 from $1.0412.

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  • Closing prices for crude oil, gold and other commodities

    Closing prices for crude oil, gold and other commodities

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    Benchmark U.S. crude oil for November delivery fell $3.50 to $85.61 a barrel Friday. Brent crude for December delivery fell $2.94 to $91.63 a barrel.

    Wholesale gasoline for November delivery fell 7 cents to $2.63 a gallon. November heating oil fell 11 cents to $3.98 a gallon. November natural gas fell 29 cents to $6.45 per 1,000 cubic feet.

    Gold for December delivery fell $28.10 to $1,648.90 an ounce. Silver for December delivery fell 85 cents to $18.07 an ounce and December copper fell 2 cents to $3.42 a pound.

    The dollar rose to 148.68 Japanese yen from 147.17 yen. The euro fell to 97.25 cents from 97.85 cents.

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