Gold prices kick off the new quarter with a strong performance Exchange traded funds may return to the track

At the beginning of the second quarter, gold continued its first-quarter rally, hitting a record high and leading the commodity market. The US PCE indicator released last Friday was relatively modest, although Fed Chair Jerome Powell reiterated that there is no rush to cut interest rates. This cautious wait-and-see tone has not in any way deterred Wall Street's gold supporters. In a recent high-profile forecast, JPMorgan said gold could hit $2,500 an ounce this year. This bullish sentiment is likely to become more prevalent as we head into the second quarter. If so, then the optimistic tone could help get exchange-traded funds back into the fray. While the price of gold has been rising, holdings in gold-backed ETFs have fallen sharply in 2024. Global ETF gold holdings hit their lowest level since 2019 in mid-March before rising only slightly.