Kitco News--For the gold market, 2016 marked the return of the "opportunistic generalist investor"--or more simply, the short-term-focused gold enthusiast who previously exited the market in late 2011 and early 2012--according to the latest findings of CPM Group. "While net investment demand in 2016 at 27.4 million ounces was below the high levels seen between 2009 and 2012, it was a recovery from the reduced investor interest in recent years," CPM said in its annual release of its coveted gold yearbook on Tuesday. Many investors left the gold space following the metal's peak at its all-time high of $1,900 an ounce in 2011. And the return of these shorter-term investors is helping to support gold's current rally. On Tuesday, gold prices remained near a one-month high as demand for assets perceived as risky have waned, and the dollar has weakened in the wake of GOP leaders' failure to repeal and replace Obamacare. Gold for April delivery, holding in solidly positive territory, last traded at $1,257.30 an ounce.
This article is commentary by an independent contributor.