Morning Bites

📈Gold-backed ETFs purchased 45t of gold net in April, reversing from the 84t net sale seen in March, per World Gold Council data. We reiterate our view that the massive ETF gold sale in March was driven by the escalation of the Middle East conflict (from 28 February), which triggered a broad risk-off reaction across most asset classes

The inflows were recorded across all regions (mainly in Europe: +27t) last month. Overall, since May 2024, global funds have added 1,053t net (~12% of world physical gold demand, in annualised terms), following the monetary easing cycle in the EU, and US, as well as persisting geopolitical unrest

Although, at spot, gold continues to trade above what we see as its fundamentally reasonable level, we believe that the precious metal’s price will remain elevated in 2026. Moreover, intense inflationary pressure, if high oil prices persist, might eventually trigger a bull-run in gold prices, as happened in 1978-1980

#ETF #gold