A few days ago, the World Gold Council published data on Gold ETF holdings for June, says Commerzbank Commodities analyst Carsten Fritsch.
The impact of ETF purchases on prices has decreased
“According to this, there was a monthly increase of 75 tons. In the second quarter, net purchases by ETF investors amounted to 170 tons, and in the first half of the year to 397 tons. According to the WGC, these were the strongest ETF tickets in a first half in five years. At that time, the Pandemic of Coronavirus and the subsequent massive relief of the monetary policy of the monetary policy The central banks were the triggers. “
“This time, it was probably the uncertainty caused by the Tariff political erratic of US President Trump. Most ETF tickets occurred in February, March and April, when the uncertainty around tariffs was at its maximum point. More than half of ETF’s tickets in the first half of the year were attributed to the ETF of gold in the US ETFs in the US”
“The strong purchases of ETF thus contributed significantly to the strong increase in the price of gold to a historical maximum in April. However, recently, the impact of ETF purchases in prices has decreased. Although the price of gold increased significantly in the first half of June, it remained below its historical maximum and then fell again, resulting in just a marginal increase of the price at the end of the month.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
