Still, many investors have remained on the sidelines as gold has surged higher, raising the possibility of further rallies as latecomers look to buy. Investors in gold via exchange-traded funds, a key driver of previous bull markets in the metal, have been sellers for much of this year, with holdings down by more than a fifth from a high in 2020.

“Market positioning is light versus previous times that prices tested these levels,” Wayne Gordon and Giovanni Staunovo, UBS Group AG strategists, said in a note. “To see even higher prices from this high base, investment demand needs to increase in the form of greater ETF purchases.”

This article was provided by Bloomberg News.

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