Gold Prices Rebound on Investor Revival
Gold demand is showing signs of broadening as investors return to the market. Global gold-backed exchange-traded funds pulled in $3 billion in July, snapping two straight months of outflows, according to the World Gold Council.
The amount represents a significant increase from North America's modest inflow of just $71 million in July, and is also higher than Asia's $616 million. The region remains one of the few sources of demand holding up during the metal's downturn.
As gold spot prices traded around $4,400 per troy ounce early Wednesday, up about 9% this month but 21% below its record high near $5,600 in late January, the comeback has been uneven. The World Gold Council described North America's July flows as a 'tentative recovery', with the region remaining the only one to post net ETF outflows.
According to Ole Hansen, head of commodity strategy at Saxo, there are tentative signs that Western investment demand is beginning to recover. He noted that the demand picture is broadening again and North America has room to catch up after its modest July inflows.