Investor allocations to gold at highest in 11 years: JPMorgan

Gold investment has risen over the past year, driven by central bank purchases, with overall implied allocations by non-bank investors at the highest since the end of 2012, said JPMorgan Chase & Co. analysts. 

The implied allocation to gold has been rising since the pandemic and looks rather high by historical standards, Bloomberg reported.

There’s little doubt the pace of central bank buying is now the most critical factor for gauging the future trajectory of gold prices, the report said, adding it has taken over from ETF flows, which were the most important before the pandemic.

There is evidence of a normalization of central bank gold purchases in Q2 2023, but it remains to be seen if this is temporary or not.