News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • “The UK and EU have agreed to return to the negotiating table to try to agree a post-#Brexit trade deal. But on Friday, a joint statement said ‘significant divergences’ remained.” - BBC News #GBP
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/Sy3g6HGLrR https://t.co/aRfVCRZut3
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/uUh18lR3yK
  • The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move. Incorporate the rising wedge in your trading strategy and learn more here: https://t.co/zTTk2WOrj9 https://t.co/q5oBalZieU
  • Both the S&P 500 and $EURUSD will enter the coming week with momentum to their back. What can trip up the rallies? What could keep them going? My overview for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/05/SP-500-and-EURUSD-Rallies-Face-Different-Conviction-Questions-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/YfEXEhkbhl
  • After the recent strength of EUR/USD, a period of consolidation is likely ahead of two critical meetings: of the European Central Bank and the European Council. Get your $EURUSD market update from @MartinSEssex here:https://t.co/Slu7tHo2a4 https://t.co/9am4szeia1
  • Triangle patterns have three main variations and appear frequently in the forex market. These patterns provide traders with greater insight into future price movement and the possible resumption of the current trend. Learn about triangles here: https://t.co/ZukLITx2KG https://t.co/gvkXqKDQyH
  • Continuation patterns can present favorable entry levels to trade in the direction of the prevailing trend. Use continuation patterns in your technical analysis here: https://t.co/TUVnO3bO1P https://t.co/vBLkMKjf4x
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/n8vpmuLdTW
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/CZePv1JEFh
Gold Price Forecast: Rally to Receive Boost from Massive ETF Holdings

Gold Price Forecast: Rally to Receive Boost from Massive ETF Holdings

2019-08-22 20:00:00
Peter Hanks, Analyst
Share:

Gold & Silver Price Forecast:

  • Total known gold ETF holdings have surged to a 6-year high of nearly 80 million troy ounces
  • Not to be outdone by its more-glamorous peer, total ETF holdings of silver have spiked to the highest on record
  • Interested in an ETF-based view on various global markets? Sign up for our Weekly Equity Webinar.

Gold & Silver Price Forecast: Rallies to Receive Boost from Massive ETF Ownership

Total holdings of gold and silver have exploded in 2019 as investors grasp for safety amid slowing global growth, trade war uncertainty and a multitude of recessionary warning signs. The seemingly incessant demand has seen the total known ETF holdings of gold surge to the highest since 2013 and easily surpass the levels seen during the immediate years following the Great Financial Crisis. Like it often does with price, silver holdings have followed suit and investors now own more silver through exchange traded funds than ever before.

Gold & Silver Holdings Swell

gold price today, silver price today chart

The substantial increase in ownership has been reflected in both gold and silver prices which have climbed roughly 17% and 10% respectively in the year-to-date. Simultaneously, gold ETF ownership has increased by 6.3 million troy ounces or roughly 9%. Silver ETF holdings have ballooned by 105 million troy ounces – a whopping 20% increase in total ownership. Using the 2019 average gold spot price of $1,340, the added holdings equate to roughly $8.4 billion while the increase in silver ownership – using a spot price of $15.5 – is over $1.6 billion.

Gold Rush

gold rate today chart, etf holdings

Data source: Bloomberg

With the recent inversion of the 2-year, 10-year US yield curve, fears of an impending recession are mounting and the future is arguably more uncertain than months prior and the nearly parabolic increase in holdings over the last three months suggests similar. Thus, it seems likely the demand for both gold and silver will continue for the foreseeable future. Consequently, the two precious metals may continue to receive a boost from the increased ETF ownership which offers a glimpse at the global demand for the commodities.

Silver Scrapes

silver price chart today

Data source: Bloomberg

That said, spot prices may still occasionally fall prey to passing Fed commentary and trade war updates, but the case for trend continuation higher appears robust. For more ETF data on gold, silver and various equities, follow @PeterHanksFX on Twitter.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Canadian Dollar Price Forecast: USD/CAD Strength May Fade

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES