ETF holdings hit a 4-1/2 year lows. SPDR Gold Trust, the world’s largest gold exchange-traded fund, stated an outflow of 1.2 tons to 968.30 tons on Monday, its lowest level seen since February 2009. Its holdings have decreased 382.5 tons since the beginning of the year.
Physical demand on gold still didn’t come to the rescue as it did in April, when prices dropped the most in 30 years, but Shanghai futures were trading at over $30 premiums to spot prices, representing several improved interest.
Marex Spectron stated “There has been some good physical demand with premiums in Asia remaining elevated … (Showing) that buyers believe that gold has probably done enough on the downside for now,”
Yet, dealers said in Hong Kong, gold bar premiums above London prices continued at the same levels as last week, signifying that demand has not picked up strongly.