Gold and Silver ETFs See Renewed Demand, But Investor Sentiment Lags Behind
Gold and silver ETFs have seen renewed demand following their price rallies, but investors' sentiment has yet to match the recent action. According to Heraeus analysts, gold prices have been in a correction since January's $5,595/oz high.
The price broke through a downtrend line, and while it's unclear whether this correction is over or if there's more to come, the analysts point out that a period of consolidation after such a large price hike isn't unusual. The 200-day moving average, still rising, indicates an uptrend.
Despite investor sentiment having cooled down, Heraeus believes the rally will resume once traders and investors are uninterested or even bearish. Central banks continue to buy gold, driven by reasons like portfolio diversification, inflation hedging, and geopolitical risk management.