Daily Archives: 09/22/2020

“Paper Gold No Longer As Important” – BofA Finds Physical Demand Now Key To Gold Prices

On a day where real yields are spiking, seemingly sparking a degrossing in gold futures, we found it rather noptable that BofA’s Global Commodities Research team publish a note highlighting the fact that recent flow data suggests that paper gold is no longer as important as it used to be.

Specifically, BofA notes that the recent gold price rally has been driven by investors, who have steadily increased their exposure to the yellow metal, a dynamic that is, as such, not unusual.