In Asia, the World Gold Council estimates gold demand in the second quarter will reach a quarterly record as bullion consumers in the region take possession of supply freed up by selling from ETFs, according to a separate report from Reuters.
“Even if ETF outflows continue in the United States, it is quite likely that the gold previously held in ETFs will find a ready market among Indian, Chinese and Middle Eastern consumers who are taking a long-term view on the prospects for gold,” said WGC Managing Director Marcus Grubb.
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Full disclosure: Tom Lydon’s clients own GLD.