In the latest client note, analysts at ING note that despite the recent surge in gold prices, the investment demand for the yellow metal remains intact amid trade war and Mid-East tensions.
Key Quotes:
“No letup in gold investment demand despite higher prices.
Investors remain jittery about rising geopolitical and economic uncertainty, and continue to turn towards safe haven assets such as gold.
ETF holdings have increased “¦ total known holdings increasing to a fresh six-year high.
Recent tension in the Middle East has only increased the attractiveness of gold for investors.
Moving forward, investors will be watching the US/China trade talks scheduled for early October for further clues on economic prospects and the direction of monetary policy. “
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