The breakout in gold prices since February has been largely ignored by mainstream investors. Over the past few weeks, gold has moved swiftly from a year-to-date low of $1,993 per ounce on February 13 to $2,230 at the end of Q1 to $2,350 at this writing — a nearly 18% move from its February low. Continued outflows from gold-backed ETFs attest to the disinterest. For the 12 months ending 3/31/2024, holdings of global gold-backed ETFs declined nearly 12%. In addition, 75% of investment advisors have less than 1% exposure to gold, the highest percentage of aversion since 2019, as shown in Figure 1.
Gold bullion's breakout is significant in that it represents the positive resolution of a three-year standoff, consolidation, or tug of war between bulls and bears.
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