Gold Silver Worlds: Market sentiment towards gold and silver remains negative. The latest daily Sentimentrader report makes this clear. Even with higher lows in the gold price since its lowest point early July and a $100 gold rally in the latest two weeks, the sentiment data remain in negative territory.
This sentiment is also reflected in the physical gold holdings of the GLD, the largest Western gold investment vehicle. As we noted earlier, in the first week of January 2013 the GLD was backed by 43,149,400.96 ounces of physical gold. Today, its holdings stand at 28,036,311.27 ounces, a decrease of 35% year-to-date. The following chart shows the correlation between the gold price and GLD gold holdings until this summer (courtesy of Zeal Research).
We noted earlier that the gold exodus in GLD is closely related to the massive gold inflows in China (but also the East in general). We also described how gold is moving in massive quantities through Switzerland where it is refined before sending it to China.
Coincidentally, these trends tend to occur with negative gold forward lease rates (GOFO, gold forward rates). A negative GOFO rate implies that gold investors pay a higher gold price over the next three months than in the future. This “backwardation” is not common in precious metals. Although we had stated before that there is no gold (significant) backwardation based on the difference between gold spot and futures prices, it appears it is occurring now specifically in 400 oz good delivery London bullion bars.(...)Click here to continue reading the original ETFDailyNews.com article: How SPDR Gold Trust (ETF) Demand Could Lift The Gold Price Dramatically HigherYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
- SPDR Gold Trust (ETF)(NYSEARCA:GLD): Gold Traditionally Bottoms In July And Zigzags Higher For The Rest Of The Year
- SPDR Gold Trust ETF (GLD): It Won’t Take Much Buying To Push Gold Prices Higher
- Watching The Price Action In The SPDR S&P 500 ETF Trust (SPY)
- SPDR Gold Trust ETF (GLD): Gold Myth Exposed
- In Gold We Trust 2013; Long Term Gold Price Target $2,230
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