Gold investors on shopping spree, holdings in ETFs rise for 18th straight trading day

LONDON: Gold investors are on the longest buying spree in five years, pushing prices higher.

Holdings of the metal in exchange-traded funds rose for an 18th straight trading day, the most since May 2010, jumping 1.3 metric tonne to 1,725.1tonne, according to data compiled by Bloomberg as of Tuesday. That is the highest level in 18 months. Gold for immediate delivery gained 0.5% to $1,273.14 an ounce, near the highest since February 2015, in London, according to Bloomberg generic pricing. Prices are correlated with buying and selling of ETFs, moving in the same direction in all but two months in the past year. Holdings have soared 18% this year, the fastest pace since April 2009, after they sank 44% from 2013 to 2015 as prices declined.

“There’s a mosaic of factors driving investors back into gold, and in that whole mosaic, I can’t see a single reason to sell,”Andy Pfaff, chief investment officer for commodities at MitonOptimal Group, said.

“We’ll have a look above $1,300, it’s just a question of when.” Gold is up 20% this year, on course for its first quarterly gain since June 2014.