World Gold Council's Bold Forecast: Gold Underowned and Poised for Continued Rally!

The World Gold Council, a leading expert in international gold markets, foresees the ongoing uptrend in gold prices persisting. This is bolstered by geopolitical uncertainties, consistent central bank acquisitions, and sustained demand for coins and jewelry. Additionally, the council anticipates that gold Exchange-Traded Funds (ETFs) will play a significant role in driving future price increases, given the current low levels of precious metal ownership.

WGC Report Highlights Factors Driving March's Gold Price Surge

The WGC's gold market commentary report attributes March's over 8% rise in gold prices to several factors, including growing geopolitical risks, steady central bank buying, and resilient demand for jewelry and bars and coins. Additionally, the emergence of stagflation in the U.S. economy is seen as favorable for gold prices historically.

WGC Report: Low Positioning of Gold ETFs Signals Potential for Significant Price Increases

Despite gold exchange-traded funds (ETFs) currently having one of their lowest shares of the U.S. ETF market, the report suggests that historically, such low positioning has preceded significant upward movements in gold prices. The WGC views gold as underowned, indicating potential for further price increases, with the current market setup appearing less "toppy" compared to previous rallies.

WGC Debunks Speculation: Gold ETF Outflows Not Driven by Transition to Bitcoin ETFs

Contrary to speculation, the WGC dismisses the idea that gold ETF investors are transitioning to Bitcoin ETFs. Survey data suggests that gold ETF outflows and Bitcoin ETF inflows are more speculative than structural, with the former occurring before the launch of Bitcoin ETFs in the U.S. markets.

In conclusion, the WGC believes that the current market conditions and low participation from U.S. investors could sustain the gold rally, despite historic price levels. The council paints a positive picture for gold prices moving forward based on these fundamentals.