ETP holdings update: Gold still attracting buyers, silver flat

Gold continues to attract buying interest from investors in exchange-traded products, despite the current lack of performance  brought about by end-of-year position adjustments and a stronger dollar. As of last Friday, the total known holdings in Gold ETPs rose to a new record of 2,630 tons (Bloomberg) and the holdings are up by 12.1 percent over the year to date. During 2012 so far, the price of gold has risen by 8.7 percent.

Leveraged investors through futures and options have been less keen in recent weeks, as the lack of clear buying signal or momentum have kept the net-long positioning near the lowest level since late August.

Silver holdings in ETP have seen little change in recent weeks, with investors continuing to hold near-record amounts. Through futures and options, leveraged investors have been scaling back their net-long exposure over the past three weeks, as the price has struggled.