The chart for Total Known ETF holdings of Gold has started to accelerate upwards in the last few days. Could you comment as to whether this is significant.

Eoin Treacy's view

Thank you for bringing this chart to my attention.

The continued support gold is receiving from ETF buying is at least part of the reason it has not been more volatile despite the fact the US economy is about to get a boost from fiscal stimulus and the Fed continues to raise interest rates.

A countervailing argument is that the strength of the Indian Rupee is acting as a headwind because consumers do have the immediate need for a hedge against reduced purchasing power when the currency is firm.

Meanwhile gold remains in a tight range below $1300 and is now testing the lower boundary near $1270. A range is an explosion waiting to happen so the breakout when it comes, either up or down, is going to be surprising in its ferocity.