Still, euro weakness, which likely boosts the dollar, is a near-term issue for gold and the related exchange traded products to contend with.

“For the first time in years, investors are beginning to question the long-term sustainability of the euro. These fears are probably overblown, but there is no quick cure for the current instability in Italian politics. These concerns are likely to linger, at least through the next Italian election,” notes BlackRock.

On a global basis, gold ETFs added assets in May, the third consecutive month of inflows for the funds.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.