Morning Bites (part 1)

📉Gold-backed ETFs sold 85t of gold net in March, reversing from the +26t net seen in February, per World Gold Council data. The outflows were recorded in all regions except Asia, which purchased 10t net last month

Since the escalation of the Middle East conflict (from 28 February), we have seen a broad risk-off across most asset classes, driven by concerns over rising inflation (and, hence, higher interest rates), weighing on speculative gold demand

Although at spot gold continues to trade above the level we see as fundamentally reasonable, intense inflationary pressure, if high oil prices persist, might eventually trigger another bull-run in gold prices, similar to 1978-1980 case, in our view

#ETF #Gold