Wolrd Gold Council Says Investment Demand Remains Solid

In an unusual counterpoint to Mark Hulbert's cautionary note about the resurgence of bullish sentiment among gold timers after yesterday's rally, the World Gold Council says that demand has remained strong largely due to investor inflows.

It said that these western investor flows have remained resilient even as the global economy has shown signs of recovery. Furthermore it said, evidence suggests that even the more tactical elements active in the gold market are being firmly driven by positive sentiment toward gold’s fundamentals. Further price support was provided by a progressive recovery in jewellery demand after a pressured first quarter.

The Telegraph report on the statement is sub-titled, "The World Gold Council said that suggestions of a gold price ‘bubble’ do not take account of gold’s market fundamentals, which remain robust." Constrained supply is also mentioned as a bullish factor.


So far, anyways, investment gold has been in strong hands. To take one example, the holdings of the SPDR Gold Trust were unchanged yet again yesterday. Gold-holders in that arena have held on even though there was serious fear of a renewed downdraft until yesterday.