Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! Monday, in its latest quarterly demand trend report, the WGC said that physical gold demand totaled 1,181 tonnes in the third quarter, increasing 28% from the third quarter last year. At the same time, year-to-date gold demand is up 18% compared to the first nine months of 2021.
"Gold continues to prove itself as a global market," he said. "You can't use just one label to define the gold market. Gold's diverse source of demand is why it should have a strategic place in an investor's portfolio." According to research from the WGC, with 10-year yields trading above 4% and the U.S. dollar holding near its highest level in 20 years, gold prices should be trading down 30%. December gold futures are down roughly 10% year-to-date as prices remain below $1,650 an ounce.
"Opportunity costs for gold are starting to stabilize," he said. "Many of the risks investors use gold to hedge against remain. Inflation and the need for capital preservation have not gone away."
Demand is increased but price is decreased for gold. Not normal..