The quick answer to that question from Ross Norman is yes, but fading of the FOMO factor (fear of missing out) is largely a western world phenomenon because more important elements supporting the gold price remain intact, central bank and Chinese demand.

Layered on top, and a possible reason for positive gold price tips such as the latest US$4000 an ounce by next June from ANZ Bank, is the WGC’s plan to create a digital gold product to broaden demand, alongside growing interest from cryptocurrency promoters.

A trial of the WGC digital gold product will be run early next year, overlapping with a curious proposal from Tether, a crypto promoter, to offer stable coins backed by gold in Swiss banks which adds another layer of demand because Tether must first buy its gold.

Taken together, the WGC and crypto plans point to new markets opening for gold as a mainstream investment option displacing the decline in retail demand.

Norman, chief executive of London-based Metals Daily, and a seasoned observer of the precious metals market, focused his latest newsletter on the effect of the record gold price on retail investors.

His assessment is that FOMO has been an important gold-price driver which he demonstrated by tracking “buy gold” inquiries using Google Trends, but as the price has risen there has been a rise in “sell gold” inquiries.

More importantly Norman also found that the fading of FOMO is largely a factor in the western world while Chinese demand remains strong and that the major price driver is the same as it has been for three years, central bank buying.

“The core drivers for gold remain unreported central bank demand, coupled with strong speculative and leveraged over-the-counter buying from China,” he said.

While gold was the good news element on financial markets this week it was challenged by ongoing strength in iron ore as the big Simandou project in Guinea hit a speed bump, and lithium stocks stabilising after a heavy mid-week sell-off.

The net result is that the gold index of the Australian stock exchange rose by 4.6% over the week, eclipsing a 1% decline in the all-ordinaries index, and a 1.4% fall in the broad-based metals index.

ANZ said the ongoing gold rush was being powered by intensifying geopolitical tension and economic uncertainty, enough for the bank to lift its gold price forecast from US$3600/oz to US$3800/oz – two days after the US$3600/oz target was breached — with US$4000/oz the forecast applicable from middle of next year.

Also at work in the gold market is an expected cut in official U.S. interest rates which could spark a fresh move by investors into gold especially if a “sell the news” correction sweeps across U.S. markets.

JPMorgan warned mid-week of a possible selling wave when the rates cut is announced thanks to heavy buying since early April which has lifted the S&P 500 index by 30% in anticipation of falling rates.

Gold leaders posted strong gains over the week led by Northern Star, up $1.10 to $20.70. Evolution, up 64c to $9.61 and Genesis, up 45c to $5.54.

Other gold moves and news included:

  • Catalyst, up $1.20 to $8.32 after reporting a doubling in the reserves of its Plutonic project, along with long-term growth plans and the admission to the ASX top 200 list thanks to its market value passing $2 billion.
  • Minerals 260, up 3c to 17c thanks to ongoing drilling success at its Bullabulling project in WA with Morgans repeating a speculative buy tip and price target of 38c.
  • Brightstar, up 7c to 48c after reporting high grade hits from drilling at its Lord Byron project in WA with a best assay of 7.16 grams of gold a tonne over 32 metres from a depth of 69m.
  • Regis Resources, up 60c to $5.42 after a revised analysis of forward gold production. Morgans has a price target of $5.80.
  • Lefroy, up 3.5c to 15c as its moves toward a start on mining its Lucky Strike project in WA.
  • Ora Banda, up 11c at $1.10 after reporting high grade assays from drilling at its Sand King project in WA, including 14m at 5.3g/t.
  • Santana Minerals, up 9c at 79c after releasing assays results from drilling at its Rise and Shine project in New Zealand with a best hit of 20m at 8.2g/t. Shaw and Partners has a price target of $1.63, and
  • Astral Resources, up 2c at 19c after reporting broad zones of mineralisation from drilling in the Theia deposit at its Mandilla project in WA with a best assay of 10.78g/t over 32m from a depth of 50m.

Gold stocks also dominate the first flush of interest in the new floats, or initial public offerings (IPO) sector, which has been moribund for two years.

Companies moving through the ASX listing process include Golden Globe Resources, Dundee Precious Metals, PC Gold, and Temas Resources.

Boutique resources bank RFC Ambrian hinted at a broader IPO revival in its latest Alchemist newsletter headlined “From boom to bust or bust to boom? The ASX Resources IPO rollercoaster.”

Lithium stocks fell heavily early in the week after reports that CATL, a major Chinese lithium producer (and battery maker), would restart a mothballed mine earlier than expected, sparking a 6% fall in the price of lithium carbonate.

Pilbara Minerals dropped by 42c to $1.99 before edging back up to $2.02. Liontown lost 10c to 79c, and Independence closed at $4.42, down 56c for the week.

29Metals was the copper winner of the week with a rise of 7.5c to 46c after reporting high-grade assays from the latest drilling at its Golden Grove project in WA with a best hit of 12.3m at 2.8% copper plus 1.4g/t of gold and 17g/t of silver.

Other copper stocks had a less interesting week despite a US10c rise in the copper price to US$4.54 a pound and interest in the proposed merger of Canada’s Teck Resources with London-based Anglo American to create the world’s fifth biggest copper producer.

Iron ore continues to surprise with its price rising to US$107 a tonne midweek before easing slightly to still be up US$7/t on where it was three weeks ago.

Fenix, the smallest Australian iron ore miner, continues to attracted support with its expansion plans, adding 2c this week to 39c, well ahead of its 25c price at the start of the year.

Fortescue, the iron ore leader, slipped 18c lower to $18.70 while trouble prone Mineral Resources was down 75c at $35.93.

Other news and market moves include:

  • Iluka Resources, down 84c at $5.84 after announcing the mothballing of a major titanium minerals mine for 12-months thanks to low prices caused by slack China demand. Interest in the stock is now focused on its emerging rare earth refinery.
  • Lynas, the Australian rare earth leader, slipped 40c to $14.28, erasing a small part of the $7.75 rise since the start of the year.
  • Lode Resources rose by 2c to 15c after reporting bonanza silver equivalent (silver plus gold) grade from drilling at its Montezuma antimony and silver project in Tasmania with a best hit of 2730g/t of silver equivalent.
  • Locksley Resources rose by 5c to 30c as investors gain confidence in its U.S. antimony development project, and
  • Sunrise Energy Metals rose by 50c to $2.25 after reporting an expanded scandium resources at its Syerston project in NSW. The stock is up $1.03 over the past month.