Caledonia Mining Corporation (CMCL)

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A major area of strength for the yellow metal can be seen in exchange-traded funds. Nichols said that total ETF reserves remain at 2,000 tonnes, their highest level in nearly three years.

SPDR Gold Shares (NYSEARCA: GLD), the world’s largest ETF, has seen negligible outflows this week, despite the sharp selloff. According to data compiled by GLD, its gold reserves as of Thursday stood at 947.63 tonnes, down only 0.32 tonnes since the start of the week.

“I expect this market segment will continue to grow – especially as some fund managers seek bargains at recently depressed price levels,” he said.

Nichols also remains optimistic on the gold market next week as he expects Chinese investors, who have been on holiday, start buying physical metal en masse.

“When Chinese investors return, at whatever price level, they’ll sense a bargain. And, their buying alone should be enough to stabilize the price and re-launch gold on its long-term upward trajectory,” he said. chevy56 GLTA