Investors Take Cover as Gold ETFs Post Longest Run in a Decade

As global tensions escalate and signs of a slowdown mount, more investors are turning to gold. Worldwide holdings in bullion-backed exchange-traded funds have expanded for 17 days in a row, the longest run of inflows since 2009.

The total stash now stands less than 35 tons away from a record set in 2012, according to the latest tally by Bloomberg. The consistent influx has come even as prices struggled to extend gains above $1,500 an ounce in recent weeks.

Gold ETF holdings are closing in on all-time high after recent inflows

Bullion has climbed in 2019 as the U.S.-China trade war hurts global growth and central banks loosen policy. The rise in ETF holdings comes as investors fret that high-level talks between Washington and Beijing set for later this week are unlikely to yield a breakthrough. In addition, Federal Reserve Chairman Jerome Powell hinted on Tuesday at the possibility of another interest rate cut.

“Gold inflows are likely to persist,” Citigroup Inc. said in a note, sticking with its forecast for a rally to $1,700 an ounce over six to 12 months. “Markedly weak manufacturing and services ISM data show that the slowdown in global trade is starting to bite the U.S. economy.”

Spot gold, a traditional haven and beneficiary when investors shun risk, edged lower on Wednesday as markets digested news that China is still open to agreeing a partial trade deal with the U.S., according to an official with direct knowledge of the talks.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 27808.30 0.05%
S&P 500 3102.59 0.19%
NASDAQ 8504.00 0.27%
TSX 16981.08 0.15%
TSX-V 528.66 0.00%

Resource Commodities

Name Last Change
Gold 1464.20 0.69%
Silver 17.08 0.47%
Copper 2.65 2.647
Platinum 901.00 0.67%
Oil 57.11 3.33%
Natural Gas 2.56 1.91%
Uranium 25.88 0.00%

@RSDigest ON TWITTER