Investors continue to pile up gold in GLD. It does not matter whether gold goes up or down, there is more and more gold in GLD vaults:
It looks like in June we are going to see one of the highest gold inflows into GLD. Since the beginning of this month as many as 812 thousand ounces of gold (25.2 tons) were acquired by GLD. In other words, the uptrend in gold prices is supported by higher demand.
What is more, since the beginning of 2016 GLD increased its gold stakes by 251.6 tons. It is quite a similar development to that seen in 2009. To remind my readers, in 2009, at the beginning of the last bull market phase in gold, GLD increased its gold holdings by 353.4 tons.
On the other hand, since the beginning of 2009 to June 10, 2009 as many as 351.9 tons of gold had flowed into GLD (40% more than this year). Then, between June 10 and December 31, 2009 only 1.5 ton of gold entered GLD:
Well, in general, fundamentals look good but we should bear in mind that the gold market is very tricky and volatile.