Biggest Jump In Gold Price Since August Last Year
Gold prices have been on a high with investors pouring in over S$1.72 billion into exchange-traded funds backing precious metals over the past month.
This bullish trend in gold marks the biggest inflows among commodity exchange-traded funds (ETFs), Bloomberg reports.
The financial daily notes that a pattern is emerging of money managers focusing more on gold in the last half year as more uncertainties emerge that cast more risks on global equity markets.
A traditional safe haven in times of uncertain economic outlook, many investors are betting on gold this holiday amid concerns over global growth slowing down after the US Federal Reserve lifted US interest rates last week leading to the decline in the US dollar.
The metal is also on course to see its biggest monthly advance since August 2017.
Quincy Krosby, the chief market strategist at Prudential Financial Inc told Bloomberg that in such a market climate dominated by “heavy selling, it’s indicative of fear, and gold becomes a safe-haven allocation.”
“The market is questioning whether the Fed is making a policy mistake, and that could lead not only to slower growth, but perhaps to a recession,” he added.