After outflows of 66.6 tonnes over the whole of 2015 – admittedly encompassing some sharp ups and downs before reaching the year end – the SPDR Gold Trust ETF (GLD), the world’s largest gold ETF, has already clawed back around one third of this in the first three weeks of the current year. At the end of last week the total gold holding in GLD stood at 664.2 tonnes, a rise of 21.8 tonnes over the three week period.
While this is still only around half the peak holding of 1,351.5 tonnes reached back in 2012, it does demonstrate that perhaps gold is indeed coming back into favour as a safe haven asset….
The above is the opening of my latest article on shapspixley.com. To read the full article click on Do GLD ETF gold inflows suggest a positive sentiment change?
By Lawrie Williams – writing on sharpspixley.com
Over the past few trading days something positive has been seen in the gold investment sector. The gold price has seen signs of just a little strength – even in the absence of Chinese physical demand with the markets closed there for the 7-day Autumn Golden Week holiday. While Chinese gold trade will not quite have been zero (there is ongoing retail demand over the period), there will have been no Shanghai Gold Exchange deliveries and imports will also have been negligible and gold price premiums have been falling as a result.
But despite this reduction in physical gold movement into the country, the gold price has been strong (relatively in relation to recent months) driven mostly be at least signs of a minor change in sentiment towards the yellow metal in the West. This is making short speculators nervous and retail demand in the West has been seeing signs of a change – in part triggered over the past few days by the very disappointing non-farm US payroll figures coming in well below expectations and suggesting to the markets that any Fed interest raising programme may have been yet further delayed……
To Read full article on the sharpspixley.com website, CLICK HERE