Macro Analyst: Return of ETF inflows should reaccelerate Gold rally
Housekeeping: Good afternoon.
Unlike earlier rallies, the recent surge of gold is not driven by lower real yields or a weaker dollar. Neither can it be explained with ETF flows. Hence higher structural demand from EM remains key, in our view. Along with central banks, Chinese investors are in focus. Going forward, a return of ETF inflows could boost gold further.
For several weeks, gold has been setting record after record. Last Friday, gold surged above the historical mark of US$2’400 per troy ounce for the first time (Exhibit 1).