Macquarie thinks investors are tiring of “fixed income markets that don’t generate income, and a stock market rally that has run out of steam amid anemic economic growth. World governments could resort to drastic measures if commodities like gold or cryptocurrencies begin to gain real steam,” according to ETF Daily News.
“That’s down nearly 50 tonnes from its peak which topped managed money investors’ holding on the gold derivatives market in New York of August 2011 when gold was peaking at an all-time high of $1,900,” according to Mining.com.
Gold has found support from the weaker greenback, however the enthusiasm could be tempered by uninspiring economic data in the US and overseas. Japan’s flat GDP growth and weaker retails sales in the US have cast doubt over global economic growth, which limits Gold’s potential as an inflation hedge,” according to OptionsExpress.
For more information on the gold bullion market, visit our gold category.
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Tom Lydon’s clients own shares of GLD.