Gold price support and resistance levels has recently surged in value, reaching new all-time highs. This rally, with gold prices exceeding $2,500 per ounce, is notable, especially as it occurred without significant input from North American retail investors. However, increasing fears of a recession and easier access to gold could alter this trend.
Google Searches for ‘Buy Gold’ Surge
Recent research by Finbold highlights a dramatic increase in interest for the term ‘buy gold’ on Google. Between July 31 and August 6, the search term’s popularity jumped by nearly 64% (from 61 to 100 on Google Trends). This surge is the highest observed during the 90-day review period from May 6 to August 6, 2024.
Regional Interest in Gold Investment
The rising interest in gold is largely driven by fears of a U.S. recession, exacerbated by last Friday’s poor nonfarm payrolls report. According to the research, some U.S. states show exceptionally high interest in gold purchases. Hawaii leads with a search interest rating of 100, followed closely by Alaska (95) and Wyoming (90). In contrast, Vermont shows the least interest, with Maine, Montana, South Dakota, and New Hampshire also trailing behind.
Retail Demand and Market Trends
Following a significant market downturn that erased $2 trillion from U.S. exchanges, gold price support and resistance levels initially fell but soon rebounded to over $2,400 per ounce. Analysts attribute the drop to traders liquidating assets to cover margin calls. Once markets stabilized, gold quickly recovered, indicating strong underlying demand.
Growing Retail Interest in Gold
Recent data from a World Gold Council (WGC) survey indicates that U.S. retail demand for gold is increasing. The survey, involving 4,394 respondents aged 18 to 75, revealed that over a quarter had invested in gold in the past five years. Gold investments were more popular than cryptocurrencies, with 30% of men and 23% of women investing in gold during this period.
Gold Investment Trends
The WGC survey also found that 25- to 39-year-olds are the most likely to invest in gold. While this age group is also active in cryptocurrency investments, a larger proportion prefers gold. Additionally, gold investors tend to be wealthier, more educated, and more ethnically diverse compared to those who do not invest in gold.
The Impact of Costco’s Gold Sales
Costco’s increasing sales of gold bullion reflect this growing interest. A recent survey indicated that awareness of Costco’s gold offerings enhanced respondents’ interest in investing in gold bars. With 41% expressing greater interest in gold bars due to Costco’s availability, it seems that both awareness and access are crucial factors in driving gold investment.
Conclusion
The surge in Google searches for gold and the increase in retail investment suggest that gold could see significant growth if the U.S. economy faces a recession. With easy access to gold products, such as those offered by Costco, this growing interest may well translate into increased gold sales and investment.
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