Western investors are finally back in the gold market after being largely absent for the past three years. This time, they’re coming in force with big purchases of bullion-backed exchange-traded products.
North American and European investors bought about 240 tons of gold in ETFs as of mid-April, according to data from the World Gold Council. That’s more than half the 441 tons they sold in the past three years.
The “swing from providing supply to absorbing supply — that’s a very large change,” Aakash Doshi, global head of gold strategy at State Street Global Advisors, said in an interview. “That has a high impact on prices, whereas central banks and China may continue to buy but that change isn’t going to be as large as the ETF buyer.”
The precious metal surged past $3,500 for the first time early Tuesday as US President Donald Trump’s criticisms of Federal Reserve Chair Jerome…
