Gold ETP flows show signs of capitulation in the end of 2014

Jan 16, 2015 08:59

Source:SMM

Despite a 9.3% decline in the number of ounces of total gold ETP holdings last year (from 56.7mn to 51.3mn), the spot price of gold ended down only 1.4% year-on-year.

UNITED STATES January 15 2015 4:12 PM

NEW YORK (Scrap Register): Despite a 9.3% decline in the number of ounces of total gold ETP holdings last year (from 56.7mn to 51.3mn), the spot price of gold ended down only 1.4% year-on-year. Last quarter of 2014 was the largest outflow quarter since Q4 2013, both near the $1,200/oz. Level, said ETF Securities

Tax loss selling appeared at play again pressuring prices at the end of 2014. Gold has shown impressive resilience despite strong ETP outflows.

With recycling having fallen to the lowest level since Q3 2008, it should help support a floor below which gold is unlikely to fall without triggering a further loss in supply.

Recycling has accounted for 37% of total gold supply on average over the past 5 years but recent weakness in the gold price has seen recycling falling by 15% year-on-year in the first three quarters of 2014.

gold ETP

gold ETP flows

ETF Securities

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Gold ETP flows show signs of capitulation in the end of 2014

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