Gold inflows into ETFs reached 1,000 tons
Gold is very attractive as a safe haven, and ETF inflows have hit 1,000 tonnes as ETF holdings bottomed out in early 2016 following a prolonged easing of the global financial crisis.
According to Bloomberg, the total gold holdings of well-known ETF holdings expanded to 2,424.9 tons in trading on Wednesday, the highest volume since 2013. Current assets exceed 1,425.1 tons in 2013 by about 1,000 tons.
Gold has risen this year as investors seek protection from slowing global growth, an ongoing trade war, and volatility in the bond market. The growth was facilitated by the rate cut by the Federal Reserve System, the market expects that the rate will be further reduced. Investors speculate that the US could lead another recession. Veteran investor Mark Mobius gave general approval for the bullion purchase this week, stating that investing in the precious metal will bring long-term benefits.
The forecasts of other market participants are also bullish. Goldman Sachs Group Inc. it is believed that prices will rise to $ 1,600 an ounce over the next six months. World Bank Commodities Research Chief Jeffrey Currie said earnings are likely to be driven by demand for ETFs as well as increased central bank buying. Spot gold traded at around $ 1,500 an ounce on Thursday, up 17% from the start of the year.