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Gold’s allure is only getting stronger as 2020 unfolds.
Spot prices reached $1 800 an ounce and year-to-date inflows into bullion-backed exchange-traded funds have topped the record full-year total set in 2009.
Investors have favoured havens this year as the coronavirus pandemic rips through economies, spurring sustained inflows into gold-backed ETFs as central banks and governments unleash vast stimulus programs.
States across the US recorded new highs in cases and deaths on Tuesday, and Federal Reserve Bank of Atlanta President Raphael Bostic said the resurgence of the virus may be threatening the pace of America’s recovery.
“A massive investor response to Covid-19 has pushed ETF holdings to record levels, the impact of which has outweighed the decline in jewellery demand and absorbed increases in recycling,” said James Steel, chief precious metals analyst at HSBC Securities (USA).
Further inflows are expected “as investors respond to elevated risks and low yields”, he said in a note. – Bloomberg.
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