Simple question. Could you explain the sudden dramatic rise of Total world gold ETF on the chart?

Eoin Treacy's view

Thank you for this topical question. Unfortunately, that move was down to bad tick information from Bloomberg and has since been excised from the record.

What is particularly interesting when one compares the chart of Total Known ETF Holdings of Gold and the gold price is that the ETF holdings have been considerably less volatile. The breakout in gold prices at the beginning of last year saw ETF holdings surge and that accumulation has persisted despite the choppy environment the metal has been trading in. 

Gold is now rallying from the lower side of a five-month range with $1300 representing the upper side of the congestion area. It will need to sustain a move above that level to signal a return to demand dominance beyond the short term. 



Silver and platinum are both rallying from tests of previous areas of support near $16 and $900 respectively. They are both testing the regions of their trend means and sustained moves above them would signal more than short-term steadying. The Gold Miners’ ETF (GDX) is also testing the regions of its trend mean.  

Palladium has been a clear leader and has returned to test the $900 area which offered resistance in both 2011 and 2014. A break in the progression of higher reaction lows would be required to begin to question medium-term scope for additional upside.