ETF Inflows Fuel Gold Price Rally Towards $5,000 Target
Gold prices have been trading near $4,347 as investors continue to pour money into gold-backed exchange-traded funds (ETFs). The ETF holdings have reached about 100 million ounces after eight consecutive days of inflows. This trend has created a significant gap between the rising fund holdings and the spot price.
The technical analysis suggests that a break above $4,394 could open the path for gold prices to reach $4,502, $4,701, and ultimately the $5,005 target. However, a one-hour chart shows near-term downside pressure, indicating potential selling activity in the short term.
Gold price has been trading near $4,339 after losing ground during Monday's session, while gold-backed ETF holdings continue to climb. The gap between rising fund holdings and spot prices could narrow if spot gold catches up with the increase in ETF holdings.