Heading into the release of nonfarm payrolls one week ago, the price of gold closed at $1,200.90 per troy ounce. The volume of physical gold held by ETFs to support investors' appetite for the precious metal stood at 52.10 million ounces. Such positions rose to a four-month high in February at 54.00 million ounces just as gold completed a spectacular fall from $1,300 to $1,196 in the space of a month.
Clearly, investors were anticipating a substantial rebound. However, the price of the yellow-metal continued to fade and reached a new low for the year around $1,148. The total known holdings of gold amongst ETF investors has subsequently fallen to 51.96 million ounces. It appears that the rally since March 17 that lifted gold's price from $1,148 was spurred on by the weakling employment report a week ago, lifting gold to $1,218.60.
In contrast to the upswing in gold, holdings continued to fall. Not quite a case of 'buy the rumor, sell the fact', but an interesting dynamic as price action looks completely unsupported by physical positioning.
Chart shows total known ETF holdings of gold