Safe haven demand for Gold remains intact in the current volatile market, supporting Gold prices above the $1,100 per troy ounce mark. Further inflows into the gold ETFs also supporting gold prices; there were nine tons of inflows on Friday (last week) and eight tons the day before. In the week to 5 January, money managers also slashed their net short positions by 41% to 15,900 contracts, putting them at their lowest level in seven weeks.
Silver is tracking gains in gold and is hovering around the $14 per troy ounce mark. But, unlike gold, however, silver ETFs saw outflows every day last week and have totalled almost 140 tons since the beginning of the year. Net long positions in silver were likewise expanded only slightly to 7,900 contracts.
The gold/silver ratio has meanwhile risen to around 79, its highest level since August 2015. As compared with gold, there is thus potential for silver to play catch-up from this point of view. It is also worth noting that gold prices remained unimpressed by the robust US labor market report which gives the Fed scope to continue along the rate hike path.
