ETFs backed by the precious metal account for just 3 percent of the $3.21 trillion of assets held by investors, signaling there’s “ample room” to add strategic gold allocations to their portfolio, and supporting the gold rally, UBS Group AG said in a report Aug. 16.
Prices may rally to $1,500 an ounce as central banks delay rate hikes, Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, said last month. December gold futures traded at $1,328.50 an ounce, down 0.4 percent at 9:15 a.m. on the Comex in New York.
In the week ended Sept. 6, money managers boosted their net-long positions in gold futures and options by 17 percent, the most since June 14, government data show. The aggregate open interest in the precious metal soared 41 percent this year.