Investors stampede into gold as top ETF swells most since 2016

Bloomberg
Bloomberg6/4/2019 02:46 PM GMT+08  • 2 min read
Investors stampede into gold as top ETF swells most since 2016
SINGAPORE (June 4): The biggest bullion-backed exchange-traded fund (ETF) is suddenly getting a lot of love. Holdings in SPDR Gold Shares surged by the most in almost three years as the US-China trade war, signs of a slowdown, and speculation the Federal
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SINGAPORE (June 4): The biggest bullion-backed exchange-traded fund (ETF) is suddenly getting a lot of love. Holdings in SPDR Gold Shares surged by the most in almost three years as the US-China trade war, signs of a slowdown, and speculation the Federal Reserve will cut rates combined to fan demand.

Assets in the SPDR ETF jumped 16.44 tonnes, or 2.2%, on Monday to post the biggest gain since July 2016, while a tally of holdings in all ETFs saw the biggest increase this year. The swing towards the traditional haven came as gold prices surged above US$1,300 an ounce to hit the highest since February.

St Louis Fed president James Bullard weighed in, saying a cut may be warranted soon. Markets are now discounting at least two quarter-point reductions by year-end -- one more than just days ago. Billionaire Stan Druckenmiller said rates could go to zero in 18 months if the economy softens.

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