However, emerging market demand for gold has not picked up yet. For instance, China has shown little demand, with the Shanghai Gold Exchange seeing little growth in volume. While the higher prices may have deterred Asian buyers, demand could pick up if prices persist in going higher, analysts said.

Even with markets waiting for Asian demand for gold to increase, the charts paint an encouraging picture for gold and the relevant ETFs. Also helping the case is the massive amount of gold own by ETFs, such as GLD and SGOL, throughout the world.

“This structural change in the market means gold demand is now also closely linked to brokerage account margin calls as ETFs are a derivative trading instrument. Such high exposure to margin calls is a great concern during periods of high market volatility. It means that the gold price may react much more quickly in either direction than the fundamentals might suggest. It means that price targets are reached more quickly, and that retreats are more sudden and severe,” adds CNBC.

For more information on the Gold ETFs, visit our Gold category.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.