Can gold's rally last as ETF investors continue to ignore the market

[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( The new year is proving to be a solid start for the [gold]( market as prices end the week near a nine-month high. The [gold]( market has rallied for five-straight weeks as prices are up more than 5% in the first month of 2023. And while there is strong bullish sentiment in the marketplace because, there is still one piece of the market missing. Investors are still not jumping into the market, causing some analysts to question how sustainable this new rally is. While gold prices have rallied 5% this year, data from the world's largest gold-backed exchange-traded fund, [SPDR Gold Shares (NYSE: GLD)]( shows that ETF demand continues to fall. As of Jan. 19, GLD's gold holdings have dropped 5.21 tonnes. The question is: does the price follow broader investment demand, or will ETF purchases pick up to reflect the bullish sentiment in the marketplace? The outflows in the ETF market have slowed, but they haven't ended. At the same time, there are concerns that silver is not seeing the same bullish sentiment as gold. After outperforming gold through November and December, silver appears to be treading water at around $24 an ounce. [Silver]( lack of momentum is also a stark contrast to what is happening in other industrial metals like copper, which is trading at a seven-month high of around $4.26 a pound. It will take some time for these market divergences to work themselves. Still, there are reasons to be hopeful that investors will eventually see the value in holding precious metals. This week [Bank of America published a very bullish report on gold]( the analysts said that they expect the precious metal to be a mainstay asset for the next three years. And Bank of America is not alone in its bullish outlook. In November, [European fund manager HANetf surveyed 100 European and British wealth fund managers](. According to the results, 89% of those respondents said they intended to increase their exposure to gold. "It now may be the case that a lot of the negative sentiment towards gold has passed," said Tom Bailey, head of ETF research at HANetf, in the report. As to what is driving sentiment in precious metals, the biggest factor continues to be weakness in the U.S. dollar; the U.S. dollar index has fallen more than 10% since its 20-year high in September. According to analysts, the U.S. dollar is losing momentum as markets expect the Federal Reserve to slow its aggressive tightening cycle. Markets have all but completely priced a 25 basis point move from the U.S. central bank next month. [In an exclusive interview with Kitco News, esteemed economist David Rosenberg said that he expects the February meeting to be the Federal Reserve's last hike](. He added that the impending recession will force the central bank to start cutting interest rates sometime in the second half of the year. In this environment, he expects gold to be an attractive asset and sees prices rallying to new record highs above $2,000 an ounce this year. With so much bullish sentiment in the marketplace, many analysts think it's only a matter of time before investors jump back into gold. On a final note, the Kitco News team would like to wish everyone a happy Lunar New Year and may the Year of the Rabbit be prosperous for everyone. Neils C. Editor's picks [Gold is a 'mainstay' asset for the next 3 years - BofA]( is a 'mainstay' asset for the next 3 years - BofA]( [Kevin O'Leary: Another 'meltdown to zero' will 100% happen, here's how he's hedging]( O'Leary: Another 'meltdown to zero' will 100% happen, here's how he's hedging]( [World War 3 is here, global collapse will pave way for CBDCs & gold can only go up - Gerald Celente]( War 3 is here, global collapse will pave way for CBDCs & gold can only go up - Gerald Celente]( [Emerging markets to rally as the U.S. dollar gets ‘wrecked’ – Michael Gayed]( markets to rally as the U.S. dollar gets ‘wrecked’ – Michael Gayed]( [Kitco News]( [Gold price is going to record highs in 2023 as investors protect themselves against a severe recession - David Rosenberg]( [Gold's bull market is just beginning as European fund managers take a bigger stake - HANetf]( [National Australia Bank to launch AUDN, an Australian dollar-pegged stablecoin]( [Royal Mint sees record bullion demand in 2022 as sales increase 25% for gold, 29% for silver]( [Russia is working with Iran on a gold-backed stablecoin]( [Gold to leave behind its $1,700-$2,000 range, eyes on gold-copper ratio as Fed pivots]( [The world could run out of gold by 2050 as demand grows to keep up with evolving society, says researcher]( [Further weakness in the U.S. dollar will drive gold prices higher - VanEck]( [Gold price to $2,200, silver to $30 in 2023 - Degussa]( [Genesis files for bankruptcy as Gemini targets parent company DCG]( [IMF offers five recommendations to manage risk in the crypto sector]( [CBDC Outlook 2023 - More than meets the eye]( [Junior gold stocks are poised to outperform in 2023]( [Collective Mining]( [Gold has room to move higher but sentiment is starting to shift]( [Gold Live App]( [Kitco Mining]( [Barrick says its preliminary 2022 gold production of 4.14Moz was below guidance]( says its preliminary 2022 gold production of 4.14Moz was below guidance]( [First Majestic reports record silver equivalent production in 2022]( [Pan American Silver reports 2022 silver and gold production within guidance]( [IAMGOLD says its 2022 gold production exceeded revised guidance]( [Kitco Gold Chart]( [Kitco Gold Chart]( Technically Speaking Jim Wyckoff Market Analyst and Columnist jwyckoff@kitco.com [Gold price powers to 9-mo. high on safe-haven demand, bullish charts]( Promotion [Swan]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco. [Advertising]( | [Update Your Email Preferences]( | [Privacy Policy]( | [Contact us]( | [Unsubscribe]( All logos, brand names and/or trademarks that appear here are the property of their respective copyright holders. © 2023 Kitco Metals Inc. 620 Cathcart, Suite #900, Montreal, Quebec, H3B 1M1 Canada.