Investment in gold jumped to 448 metric tons in the second quarter, or more than double the figure of the same period year-over-year, largely due to a year-over-year increase in ETF investment to 236.8 metric tons, compared to a 23 metric ton outflow the year prior.
The World Gold Council expects jewelry demand to increase in the second half of the year, notably in areas like India where key festivals and fourth-quarter holiday season in the West, could provide further support.
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“This current level of around $1250.00/oz plus is near enough to a bottom to render the downside risk limited. The same goes for the gold and silver miners as the chart below shows the Gold Bugs Index (HUI) has retraced some of its steps from the 285 level back to the 198 level and is currently standing at 217. It should be noted that the HUI is still some 66.5% off its high (630-217) made in 2011 so there is a lot of ground to made up,” according to Mining.com.
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