• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Six Reasons Why Gold Will Keep Rising

Diary, Newsletter

If you are a current gold investor, you have to love the latest monthly statistics just published by the World Gold Council.

After years of a death by a thousand cuts inflicted by endless redemptions of gold ETFs and ETNs, recent reports showed a sudden influx into the barbarous relic.

North American ETFs led the charge, with some 28.8 metric tonnes valued at $1.3 billion pouring into the funds.

The SPDR Gold Shares (GLD) took in the most, 22.4 tonnes worth $1.03 billion, followed by the IShares Gold Trust (IAU), which added 4.6 tonnes worth $266 million.

Europe followed with 6.4 tonnes worth $321 million.

Asia was a net seller of 2 tonnes worth $80 million as investors pulled money out of precious metals and placed it in Bitcoin, Ethereum, and other cryptocurrencies.

Global gold-based ETFs collectively hold 2,295 metric tonnes of gold valued at and have picked up 143.5 tonnes so far this year.

For those used to using American measurements of precious metals, there are 32,150.7 troy ounces in one metric tonne.

The figures augur well for continued cash inflows and higher gold prices.

My experience is that sudden directional shifts of fund flows like this are NOT one-offs. They continue for months, if not years.

Of course, the trigger for these large inflows was the yellow metal’s decisive breakout on big volume from a two-year trading range.

Not only did now longs pile into the market, there was frantic short covering as well.

Too many options traders had gotten comfortable selling short gold call options just above the $1,800 level.

Once key upside resistance was shattered, gold tacked on another $50 very quickly. Bearish traders were smartly spanked.

Gold plays that did well, including Van Eck Vectors Gold Miners ETF (GDX), Barrick Gold (ABX), Newmont Mining (NEM), and Global X Silver Miners ETF (SIL), turned profitable.

There are six reasons why gold has gone off to the races.

1) Ten-year Treasury bond yields are peaking out at 5.0%. The opportunity cost of holding gold is about to drop sharply.

2) Falling interest rates guarantee a weaker US dollar, another big pro gold development.

3) The last of the pandemic stimulus is fading fast.

4) The new conflict in the Middle East has poured the fat on the fire.

5) General concerns about the increasing instability in Washington have driven nervous investors into EVERY flight to safety play.

6) The collapse of trust in crypto has propelled a lot of assets back into gold.  

Inflation has historically been the great driver of all hard asset prices.

After such a meteoric move, I would expect gold to consolidate here around this level for a while to digest the recent action. It may drift sideways, or fall slightly.

That’s when I’ll pick up my next basket of longs.

 

 

 

 

 

bullish on gold

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-10-27 09:04:402023-10-27 16:25:23Six Reasons Why Gold Will Keep Rising
You might also like
May 7, 2024
2024 Annual Asset Class Review
July 12, 2024
The Market Outlook for the Week Ahead, or Here Comes The Four Horsemen of the Apocalypse
Record-Breaking Inflows
September 2 Biweekly Strategy Webinar Q&A

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: A Conversation With the Boots on the Ground Link to: A Conversation With the Boots on the Ground A Conversation With the Boots on the Ground Link to: October 27, 2023 Link to: October 27, 2023 October 27, 2023
Scroll to top