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Going for gold: European investors pour nearly $1bn into gold ETFs in July

European investors poured nearly $1bn into exchange traded funds that invest directly in gold in July, more than offsetting outflows from US funds and indicating the emergence of divergent views on inflation, the global economy and future direction of the precious metal.

European funds attracted net inflows of $999m, equivalent to 17.1 tonnes of gold, while ETFs domiciled in North America, led by large US funds, saw net outflows of $402m or 7.3 tonnes, according to the World Gold Council, an industry body. Overall, WGC data showed a 0.3 per cent rise in assets under management in gold ETFs in July, driven mostly by the buying in Europe, although Asia also recorded net inflows.

“Gold is currently in transition,” said Mobeen Tahir, associate director of research at WisdomTree in Europe, which manages a range of gold exchange traded products…read more.

Palantir Buys $50.7 Million Worth of Gold Bars

Palantir, the data analytics software company cofounded by Peter Thiel, revealed in a filing that it bought $50.7 million worth of 100-ounce gold bars.

Why? “You have to be prepared for a future with more black swan events,” COO Shyam Sankar told Bloomberg. A black swan event is a potentially devastating economic crisis that no one sees coming—like, say, Covid-19.

Where? The gold will be stored in a secure location in the northeastern US, so…nowhere near a New York bar’s coatrack…read more

Gold price tumbles to yearly low, trades under $1,700 following Friday’s massive sell-off

Gold futures dropped sharply on Sunday evening at the start of the Asian trading session.

Gold October futures dropped to low of $1,677 before recovering. As of 8:20 p.m. ET, gold is off 2.19% to $1,722. Silver October futures lost 3.5% to $23.74. Platinum was also off, losing 1.24% to $960 for October futures.

Spot gold is seeing it’s worst two-day cash drop since April 2020 as the world started to feel the impact of the COVID-19 pandemic, noted Zero Hedge.

Bitcoin is down, too, losing 2.08% over the past hour to trade at $43,377 at 8:30 p.m. ET.

Gold and silver’s selloff started Friday as markets reacted to stronger than expected employment data. U.S. equity markets hit a new record high Friday after the U.S. Labor Department said that 943,000 jobs were created in July, handily beating consensus expectations of 870,000 jobs. At the same time, the unemployment rate fell to 5.4%, down from 5.9% in June. Wages also rose more than expected in July…read more.

How much gold & silver is actually in Tokyo 2020 Olympic medals?

It is no longer a secret that the Olympic gold medals don’t contain a lot of the actual yellow metal. But how much gold do they have, and what about silver and bronze medals?

Here’s the breakdown:

Gold medal: Only 1.2% of the Tokyo 2020 Olympic gold medal is actually gold. The other 98.8% is silver.

Silver medal: The silver medal is the only one that truly lives up to its name. It has the same weight as gold and is made from 100% actual silver.

Bronze medal: The bronze medal is lighter and is made up of 95% copper and 5% zinc.

The data are provided by Compound Interest.

It is even more interesting how Japan got the needed metals to make approximately 5,000 medals that are currently being handed out at the Tokyo 2020 Olympic Games.

As part of the “Tokyo 2020 Medal Project,” Japan collected approximately 78,985 tons of used small electronic devices. Out of those, 6.21 million were used mobile phones. These were collected all across Japan from April 2017 till the end of March 2019.

Japan managed to collect 32kg worth of gold, 3,500kg worth of silver, and 2,200kg worth of bronze…read more.

Gold price falls to new daily lows as key inflation indicator misses expectations

Gold fell to new daily lows after the U.S. annual core PCE price index came in at 3.5% in June versus the consensus forecast of 3.7%.

On a monthly basis, the core PCE price index was up 0.4% in June versus the expected 0.6%, according to the data published by the U.S. Department of Commerce on Friday.

The core inflation strips out volatile food and energy prices and is the U.S. central bank’s preferred inflation measure.

Gold dropped following the data release, hitting new daily lows. December Comex gold futures were last trading at $1,826.10 an ounce, down 0.53% on the day.

The report also showed that real personal consumption was up at 0.5% in June after falling 0.6% in May. Personal income was up 0.1% last month, beating the consensus call for a drop of 0.3%.

“The increase in personal income in June primarily reflected an increase in compensation of employees. Government social benefits decreased in June. Within compensation, the increase was primarily in private wages and salaries, reflecting Bureau of Labor Statistics Current Employment Statistics,” the report said…read more.