Inflows into gold ETFs in the 2 weeks ended last Friday were at the highest levels since March 2022 when Russia invaded Ukraine and before that since 2020. While ETF inflows have been positive each month since May, the latest 2 weeks inflows are much greater than the levels seen since May and point to another very bullish sign that if the inflows into gold at these or higher levels then POG is set to move much higher. See the world gold council for more details.
Note:
1. In March and April this year gold ETFs had net outflows so if we end up with much greater Chinese activity on the Chinese gold futures market (see my prior post) the continuation of significant inflows into gold ETFs will add fire to fuel a bigger rise in POG
2. The last gold bull market from about 2002 to 2011 was almost entirely driven by inflows to gold ETFs, Central banks were net sellers of gold until about 2009. Imagine what will happen to the POG if we have significant ongoing inflows into gold ETFs above the levels in the last 2 weeks PLUS continued buying by central banks PLUS buying by Chinese! Then what about the impact if Trump wins which is expected to be very positive for POG. Could we end up with the other of all gold bull markets over the next 5-10 years! The mind boggles.
Do not rely on my analysis and make sure you do your own.
SPR Price at posting:
$1.58 Sentiment: Hold Disclosure: Held
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