“In Friday's audio, Eoin mentioned the 17% decline in ETF gold holdings. Is there chart or index to follow the trend of ETF gold holding?

“I found the "big picture, long-time outlook" very clearly and broadly presented, (in these uniquely changing times). Thank you!”

Eoin Treacy's view Thank your kind words. We first became aware of the Total Known ETF Holdings of Gold chart in November when a subscriber requested that it be added to the Chart Library. Since then we have commented on it on a number of occasions because it represents the actions of an important segment of the gold market. The Index can be found in the Chart Library using any of the title's key words. Alternatively the Bloomberg ticker is ETFGTOTL. It is listed in the Commodity Indices section.

Total Known ETF Holdings of Gold trended consistently higher for the better part of a decade; moving from an insignificant demographic to become one of its most influential in the process. The Index broke its progression of higher reaction lows for the first time in February and continues to extend its decline below its 200-day MA. The deterioration in prices from 84 million to 70 million ounces represents significant trend deterioration, type-2 top formation completion. We can only conclude that a powerful source of demand has morphed into an equally potent source of supply.

Today's action in both the gold and silver markets was notable. Gold has been falling for the last seven consecutive days and retested the April 17 th lows where it found at least short-term support. While there is scope for an unwind of the short-term oversold condition, a sustained move above $1500 will be required to question medium-term supply dominance.

Silver tested the $20 area in early trading this morning and rebounded to almost $22. $20 represents the upper side of the 2008 through 2010 range and represents a natural area where prices might find support. However, a break in the six-month progression of lower rally highs, currently near $24.90, would be required to question the consistency of the medium-term downtrend.