Data from Shanghai Gold Exchange shows a 12% month-on-month increase in physical gold withdrawals, highlighting strong retail and institutional demand in Asia. For global investors, this trend supports a thesis that investing physical gold acts as a regional wealth preservation play during equity market turmoil. Technical analysts foresee consolidation before another rally. This aggressive accumulation by other nations has caused the U.S. portion of the total global reserve pie to shrink to its lowest level in nine decades, as per the Bloomberg data shared by Otavio Costa , a macro strategist at Crescat Capital. Currency can also have an impact, as the pound has this year appreciated significantly against the dollar, in which spot gold is priced. US Treasury yield curve inversion often triggers a flight to safety; this week’s deeper inversion has added momentum for investing physical gold. Traders are closely watching $2,350/oz breakout levels as potential entry signals, alongside stocks showing relative weakness in cyclical sectors.
