Practically $40 billion flowed into gold-backed exchange-traded funds within the first half of the yr, topping the earlier annual file and highlighting sturdy investor demand for treasured metals throughout the coronavirus pandemic.
The flood of cash shifting into the gold market comes with bullion costs rising to their highest stage in almost 9 years. On Wednesday, most actively traded gold futures inched up 0.5% to $1,819.70 a troy ounce on the Comex division of the New York Mercantile Change. Costs are up almost 20% for the yr and about 4% under their all-time excessive of $1,891.90 from August 2011.
Driving the rally are a burst of haven shopping for from skittish buyers, together with ultralow rates of interest amid central banks’ efforts to prop up the world financial system. Low charges make proudly owning gold extra engaging for buyers as a result of the valuable steel doesn’t provide any yield merely for holding it.
With these tendencies lifting investor demand for gold, $39.5 billion flowed into gold-backed ETFs within the first six months of the yr, World Gold Council figures printed Tuesday present. That topped a earlier annual file hit in 2016 and pushed international gold ETF holdings to a brand new excessive.
Whereas shares and different dangerous belongings have additionally climbed recently, many analysts mission a bumpy financial restoration that also boosts gold.