CO:ETFs play key role in rising gold investment demand
Exchange-traded funds have played a major role in heightening investment interest in the Gold market, says Deutsche Bank. “Investors now represent just over 40% of total gold demand,” the bank says.
“No other commodity has such a high participation by investors relative to physical demand.” An increasing share of this allocation from the investment community has been ETFs, the bank says.
“The popularity of physically backed Gold ETFs have also changed the relationship of the gold price to the U.S. dollar such that gold can now rally in both rising and falling U.S. dollar environments,” Deutsche Bank adds.
