Gold Analysts Most Bullish Since March On Physical Demand
Gold analysts are the most bullish in five months according to Bloomberg. Thirteen analysts surveyed by Bloomberg expect prices to rise next week, four were bearish and five neutral, the highest proportion of bulls since March 8.
Store of wealth buying of physical gold surged 53% in the second quarter from a year earlier, making up for the record sales of gold ETFs.
Investor and store of wealth demand coin, bar and jewellery demand jumped by 376.5 metric tons to 1,083.2 tons in the second quarter as global bar and coin purchases reached a record and jewelry usage was the most since 2008.
Nations added 534.6 tons to reserves last year, the most since 1964, and may buy 350 tons this year, the World Gold Council said.
“People buying physical gold are more about having a store of wealth in the medium to long term whereas the ETP liquidations are more the speculative side,” Mark O’Byrne of GoldCore told Bloomberg.
“Physical demand remains very robust. People see gold prices as good value at these levels.”