Buying in gold exchange traded funds is rebounding along with prices in June after investors pulled $1.5 billion from gold ETFs listed around the globe last month.
Meanwhile, George Soros boosted his stake in a gold ETF in the first quarter while hedge fund manager John Paulson kept his sizable holdings, according to a report.
Speculation is heating up that central banks will announce more easing measures to boost sagging economies.
Europe’s relentless debt crisis may require additional intervention. In the U.S., the disappointing May jobs report has fueled expectations of more quantitative easing from the Federal Reserve. [Central Bank Stimulus Would Rally Gold ETFs]
On Thursday, China’s central bank lowered interest rates by a quarter point. [Rate Cut Stokes China ETFs]
Investors are returning to gold ETFs after holdings in bullion-backed exchange traded products fell for a third month in May, according to Bloomberg.