At the beginning of April 2024, the gold market witnessed a significant uptick in prices, continuing a trend that underscores gold’s role as a hedge against inflation.
This surge can be attributed to a combination of factors, including geopolitical tensions, central bank buying, and ETF outflows, that have converged to propel the demand for gold to new heights.
Despite significant outflows from gold ETFs, central banks are purchasing gold at unprecedented rates, pushing prices higher.
Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, shared this analysis on X (formerly Twitter) on May 19, highlighting the 30 million ounces of ETF outflows since 2020 versus central banks’ acquisition of approximately 100 million ounces.
Gold/Crude breaking resistance. Source: Mike McGlone/X
This divergence raises questions about what is truly influencing the gold…
