Gold Price Setup Diverges from ETF Demand

Gold prices have been under pressure in recent weeks due to rising bond yields and a stronger U.S. dollar, but one key indicator suggests investors may be treating this cycle differently than previous ones.

Saxo Bank commodity strategist Ole S. Hansen notes that despite the weakness in gold prices, which are down around 2% this week, investors continue to increase their exposure through gold-backed ETFs.

Hansen points to a chart comparing total known gold ETF holdings with the gold price, and the divergence is striking. While gold has fallen roughly $1,000 below its early-2026 peak, ETF holdings have staged a powerful recovery and are now approaching their February high.

This unusual behavior may indicate that investors are increasingly using gold as portfolio protection against debt, fiscal, and financial-system risks rather than simply trading it based on interest-rate movements.