Wednesday, May 6, 2020

Gold Demand & Central Bank Policies in Three Charts

Gold Demand & Fed Policies in Three Charts

The popular GLD Gold ETF (number of tonnes held in storage) versus the FED's balance sheet. No surprise a huge jump in demand for gold.

With interest rates at 0% once again (USA) and 0.25% (Canada), and money-printing continuing across central banks to inject liquidity into the world economies, the demand should continue strong in gold. Increase in demand -> increase in price.

Bank of Canada Assets

US Federal Reserve Assets

Gold Demand in ETFs