 Hello, welcome to this CMC markets trading update today. The focus is gold The reason specifically is that there's been some data released by the the World Gold Council just charting the ETF flows for gold and what it's shown is that Invested demand for gold as you can see through the inflows into exchange trade of funds that track the performance of gold Have increased by the highest on record in the first quarter of this year So that even exceeds the inflows into gold funds when investors were seeking the safety of Gold during the financial crisis is actually 15% higher than during the financial crisis So I'm going to bring that chart on the screen here so what you can see is that since the first quarter of 2013 there have been outflows for the most part out of gold ETFs Where instead of buying the actual physical Metal and keeping it in storage or instead of buying spot gold as you do through CMC markets People buying ETFs which track gold those have mostly seen money coming out of those funds as people didn't want gold But as you can see a massive change and so that top line shows that there's the total gold holdings Are on the rise again, so the next Thing to look at will be when the total holdings in those funds exceed the peaks that we got in in late 2012 Now another chart that I just want to show you bringing it onto the screen again here is ETF gold holdings in tons by region and so here you can just see it broken down by North America Europe Asia and other countries and then you can also see the price of gold on here So obviously you can see that there's pretty strong relationship here So sometimes there's chickenly chicken in the egg obviously higher prices encourage people to jump into the funds But also just the fact that there is that invested demand is pushing the price of gold higher so again still got those peaks from 2012 the hike of the height of the quantity cycle to to get through in terms of ETF Total holdings and that's about the same point in time in which the gold price topped So we need these two things moving together funds going into ETFs And gold price is going higher together for the price rise to be supported So if I move this screen move this chart out the way a quick bit of technical analysis of these charts You can just see from a longer term perspective on gold We had this prolonged Downward down trend defined simply by this falling trend line We obviously broke that in the early part of this year went back to test it went up to a 1300 Tested 1200 again broke through 1200 So now we're consolidating and really the big line in the sand above us is just the 1 400 mark Which has acted as resistance a couple of times on on declines From between 2013 and 2014 so you'd imagine another test of that big round figure Which has acted as resistance in the past is going to cause a bit of a faltering and I think that's partly You know just the move up towards that figure is why we're consolidating at the moment The midpoint of our consolidation you can see more clearly from this four-hour chart is the 1,350 mark, which is almost precisely where we're sitting as I make this video on Thursday So by the time you're seeing this chart, maybe there'll be a few hours difference in the price of gold But nonetheless what we need to see is Firstly a first indication would be a move outside this triangle pattern. Now. I first do this line Before this last test was shown at the one three three five put it in the chart forum So that support is nice so willing to the upside and again this top side of the triangle Alongside these resistance peaks is working as a ceiling to the price We need a break across there for the first sign There's some upside direction and then really we want to break the one three six five is the sort of round number in these Highs to again challenge up to the highs of the year Equally to the downside the first support would be this one three thirty and then the lows around one three ten and one three hundred So I hope that information on the ETF flows was instructive what of course we want to see is whether How to what extent given that we've got a rally in stocks and not so much need for a safe haven in Q2 Did we see similar inflows into these gold funds in Q2? We'll be telling for how much this this gold rally has some sustainability in the long term Well, thanks very much Jasper signing out