Demand for gold-backed exchange-traded products is going from strength to strength in February, with Commerzbank reporting inflows of around 50 mt in the last two days, the largest two-day inflow since the Greek debt crisis began in 2010.
ETF inflows totaled 24.4 mt Monday, the German bank said in a report Tuesday, in addition to Friday's inflows of 25.4 mt.
It also means inflows for February have already outweighed the total withdrawals seen in 2015, with total holdings at a one-year high of 1,665 mt.
"ETF investors, who are generally regarded as having a longer-term horizon, clearly view the current price level as an attractive opportunity to buy," Commerzbank said.
"The high ETF purchases should lend further support to the gold price in our opinion."
Gold has outperformed in 2016 on safe haven demand amid market uncertainty, up more than 15% this year at around $1,220/oz Tuesday.
Net long gold positions on COMEX rose to 81,013 contracts in the week to February 16, a 16-week high.
Inflows into SPDR Gold Trust, the world's largest gold-backed exchange-traded product, totaled 19.3 mt on each of Friday and Monday, the largest daily inflows since 2011, according to data released by the company.
Over 108 mt has been added to the SPDR Gold Trust since the beginning of the year, following outflows of around 50 mt in 2015.
The London Bullion Market Association Gold Price settled at $1,218.75/oz Tuesday morning, up $7.75/oz from Monday's close.
