Die-Hard Gold Enthusiasts Hold Their Nerve Despite Plunging Prices

Group 1 - The recent surge in gold prices has faced a significant selloff, with a 6.5% decline bringing prices near $4,000, yet long-term bullish sentiment remains intact among investors [1][2] - Investor concerns over increasing budget deficits have contributed to a flight to gold, attracting both traditional and retail speculators [2][3] - Central bank buying has been a major driver of gold's price increase, with a notable rise in purchases following geopolitical tensions, particularly after the invasion of Ukraine [3][5] Group 2 - The volume of gold held by exchange-traded funds has increased by 4.2 million ounces in the past five weeks, reaching nearly 100 million ounces, indicating strong demand [4] - The market has seen a shift where weaker hands, such as institutional and retail investors, have recently entered, but the majority of the rally has been supported by stronger hands [4] - Central banks have significantly increased their gold reserves since the financial crisis, doubling their buying pace after the freezing of Russian assets in 2022 [4][5]