LONDON (Commodity Online):  Gold holdings by physically backed exchange-traded funds have hit a record high. The metal lately has been performing more like a “risky asset” than a “safe haven,” said Commerzbank in a research note.

According to bank, after falling earlier this week when S&P lowered the ratings outlook for several eurozone  countries, the metal recovered amid hopes of a satisfactory outcome to Friday’s European Union summit.

“It is also worth noting that holdings of Gold ETFs on Tuesday hit a record 2,358 (metric) tons. Thus, ETF investors are continuing to show loyalty to gold despite its disappointing price performance and price fluctuations are currently being triggered by the futures investors,” , Commerzbank concluded.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook