Part 4/11:
Market data indicates a strong influx of investment into precious metals. Gold-backed ETFs saw their strongest half-year inflows in years, adding around 397 tons in the first six months of 2023. Central banks worldwide have also been buyers, accumulating over 1,000 tons annually for three consecutive years, bringing global holdings to approximately 36,000 tons.
This structural demand, fueled by economic uncertainty and currency doubts, supports the gold rally. Moreover, short-term traders are also jumping aboard, contributing to the asset’s vertical moves—though this speculative activity introduces additional risks.