Tags: gold | safety | metals | bullion

Gold Holdings Surge by Most Since 2010 as Haven Assets in Demand

Gold Holdings Surge by Most Since 2010 as Haven Assets in Demand

Monday, 22 February 2016 10:11 AM

The rush into gold in 2016 is gathering pace as investors seeking a haven boosted holdings to the highest level since March.

Assets in exchange-traded products surged 25.39 metric tons, or 1.6 percent, to 1,640.81 tons on Friday, according to data compiled by Bloomberg. In percentage terms, that’s the biggest one-day influx since May 2010.

Investors have poured funds into bullion-backed ETPs in 2016, snapping three straight years of declines, amid concern that faltering global growth will undermine the case for further rate rises from the Federal Reserve and hurt equity markets. The spread of negative rates by central banks in Japan and Europe has almost added to demand.

“The sharp rise in the gold price this year is only the beginning of the whole drama,” said Mark To, head of research at Wing Fung Financial Group in Hong Kong, citing turbulence in financial markets for supporting bullion demand. A price of “$1,300 to $1,400 is quite imaginable” in the coming months, he said.

Bullion for immediate delivery traded at $1,222.37 an ounce at 10:34 a.m. in Singapore on Tuesday, 15 percent higher this year, according to Bloomberg generic pricing. The metal gained to $1,263.48 on Feb. 11, the highest level in a year.

 

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
The rush into gold in 2016 is gathering pace as investors seeking a haven boosted holdings to the highest level since March. Assets in exchange-traded products surged 25.39 metric tons, or 1.6 percent, to 1,640.81 tons on Friday.
gold, safety, metals, bullion
204
2016-11-22
Monday, 22 February 2016 10:11 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved