Last year’s record gold rally still has room to run higher this year as central banks keep buying, investors return to exchange-traded funds (ETFs) and governments wrestle with debt, World Gold Council (WGC) Senior Strategist Joe Cavatoni said.
The clearest threats to that run are a softer economy, weaker bank demand and more recycled metal coming back to market. However, the backdrop remains strong, he said.
“These economic conditions are becoming increasingly challenging,” Cavatoni told The Northern Miner video host Devan Murugan last month during the PDAC event in Toronto. “What do you need in your portfolio to keep it safe? An asset that correlates appropriately to those kinds of risks.”
WGC data shows gold demand — including over-the-counter trade — topped 5,000 tonnes last year for the first time and reached a record $555 billion (C$772.2 billion) after bullion set 53 all-time highs. Gold ETF holdings grew 801 tonnes, the second-strongest year on record, while central banks bought 863 tonnes and kept official demand historically high.
Watch the full interview below:
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