Investors on Gold ETF Buying Spree Amid Global Stock Rout
Bloomberg - Jan 11, 2016
Investors embarked on the biggest three-day buying spree in gold-backed exchange traded funds for a year as bullion rallied at the start of 2016 amid a stock-market slump.
Holdings in ETFs climbed 19.6 metric tons in the three days through Monday to 1,477.7 tons, according to data compiled by Bloomberg, the largest increase since January 2015. Assets rebounded from the lowest in almost seven years on Jan. 6. Investors had been selling gold on expectations that U.S. borrowing costs would rise, hurting the metal as it doesn’t pay interest.
Bullion jumped 4.1 percent last week for the best performance since August amid a global equity rout spurred by a stock market slump and a weakening currency in China.
