Investor's demand in ETFs may support Gold Price: HSBC

New York (Apr 24)  "The rise in gold holdings so far in April may be viewed as a sign of strength from longer-term investors. These investors are often viewed as having a buy and hold philosophy when compared to investors on the faster moving COMEX," said HSBC. "A further build in gold-holdings in ETFs may help support prices, in our view."

According to the latest data from SPDR Gold Shares (NYSE: GLD), the world’s largest gold-backed exchange traded-fund (EFT), investor flows are modestly positive for the month so far.

As of April 22, the ETF has seen its gold reserves grow by 164,282 ounces to 23.87 million ounces. The inflows come after a decline of 843,923 ounces reported in March.

Commodity analysts at HSBC said that globally, among the top 14 gold ETF’s, gold reserves rose by 0.1 million ounces to 52.2 million ounces.

“The rise in gold holdings so far in April may be viewed as a sign of strength from longer-term investors. These investors are often viewed as having a buy and hold philosophy when compared to investors on the faster moving COMEX,” said HSBC. “A further build in gold-holdings in ETFs may help support prices, in our view.”

Source: BullionStreet