Total known holdings of gold in Exchange Traded Products (ETP) rose for a third week last week. The 2.7 tonne rise to 1,954.7 tonnes (Bloomberg) follows on from similar small increases during the past couple of weeks. Considering the price recovery witnessed during this time it points towards some hesitancy amongst investors about becoming involved at this stage. This sentiment is also mirrored in the futures market where the main source of buying so far is from those covering short positions.
Gold ETP flows have stabilised but are not picking up despite the strong rally during August.
Silver holdings reached a new record last week with the part-investment and part-industrial metal continuing to outperform gold as economic data from China improves and geo-politics overall lends a hand.