[Commodity Storylines] Gold continues to be bought by central banks around the globe!

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According to ING THINK, a weekly economic and financial analysis of global market trends, written by Head of Commodities Strategy Warren Patterson, the headline is: “US rate cut drives gold rally”.

Here are some of the highlights from the analysis:

• “Gold has been one of the best performers among major commodities this year. It has surged more than 28% year-to-date, hitting a series of records on the way, supported by rate-cut optimism, strong central bank buying and robust Asian purchases. Safe-haven demand amid heightened geopolitical risks as well as uncertainty ahead of the US election in November has also supported gold’s record-breaking rally this year.”
• “Global physically-backed gold ETFs saw their fifth consecutive month of net inflows in September, attracting $1.4 billion, according to the latest data from the World Gold Council (WGC). The gain was driven by North America, while Europe was the only region that saw net outflows. Investor holdings in gold ETFs generally rise when gold prices gain, and vice versa…