Gold prices are up 20% YTD, having almost halved over the past 4 years. Almost all this year’s price gain can be explained by investment flows. ‘Investment demand,’ including gold bars/coins, ETFs & OTC buying, doubled in H1 this year from average 2014 & 2015 level (fig 8). In contrast, other key components of demand continue to trend down; jewellery & industrial demand continue to make new multi-year lows. Key sources of gold supply have remained broadly stable. In that respect, the gold market continues to function ‘normally’, with large gold price swings still determined by investment flows.