Gold prices could head toward $1,300 this week. Gold set record highs last week, making it the second consecutive week of record prices. Investment demand remains firm, but has eased from the levels seen over the past seven weeks.

Record high prices may be deterring increased buying activity, but they also are tempering sales of gold investments. Combined exchange traded fund gold holdings were a record 64.81 million ounces on 17 June, up 140,592 ounces from 64.67 million ounces at the end of the previous week.

Investor sentiment toward financial markets and economic conditions improved last week. Investors moved back into equity markets, but also held on to safe haven assets.

Nervousness over financial markets remains despite recent recovering stock markets and improved economic data.

While investors may be feeling more comfortable moving back into a broad array of asset classes, they continue to buy gold to hedge against another possible wave of volatile and vulnerable financial and economic activity.

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