MarketWatch: “ETFs are holding up the gold market”By admin_45 in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek's Nick Colas:
.... "Global gold demand was up 1% in the first three months of 2020, while supply fell by 4%, wrote Nicholas Colas, Co-founder of DataTrek Research, citing a quarterly report from the World Gold Council. During that period, ETF purchases of gold GC00, 0.04% were more than seven times as high as in the same period a year ago....
ETF demand has helped bump pricing 11% higher in the year to date — 4% higher in the first quarter — and the precious metal “is now approaching its all-time highs of $1,900 set in August 2011,” Colas wrote.
Colas is bullish about gold’s prospects, mostly because of ETF demand. The 325 tonnes purchased by funds in 2019 more than offset declines in most other categories. A bigger question is demand for jewelry, he notes. “In normal times this is 50% of the end market for gold.”
One of the biggest markets for such demand is China, Colas said. “As the country continues to reopen, Q2 and Q3 demand should improve"....
Read the full article here in MarketWatch!