Going for gold: Money floods into precious metals like never before
Bob - G.
Brexit and dovish Fed boost gold, silver prices
With Brexit-related turmoil and delayed expectations for the Federal Reserve to raise interest rates, investors canâ€™t seem to get enough of gold: their appetite for the safe haven has just risen to an all-time high, according to the latest flow report from Bank of America Merrill Lynch.
The report, published every Friday, showed $4.1 billion poured into precious-metals funds in the week ended Wednesday, the largest inflow on record. Their data go back to 2005. Precious metals have now seen inflows in 24 of the past 26 weeks, according to the data.
â€śGold and silver have soared as investors are forced to hedge against future populist policies,â€ť the BAMLâ€™s investment strategy team, led by Michael Hartnett, said in the report.
Gold GCQ6, +0.39% Â has jumped almost 8% and silver SIU6, +2.58% Â has rallied 14% since the U.K. in a June 23 referendum surprisingly voted to leave the European Union. The vote sent shock waves through financial markets and spooked investors into safe havens such as precious metals and the Japanese yen USDJPY, -0.20%
The post-Brexit uncertainty has further strengthened the view that the Federal Reserve will delay its next rate hike, also seen as a positive for precious metals. That helped gold settle at a two-year high on Wednesday of $1,367.10 an ounce, while silver settled above $20 for the first time since August 2014.
The strong moves has also helped gold and silver miners outperform the stock markets in the Brexit aftermath. Randgold Resources Ltd. RRS, -0.16% GOLD, +2.72% Â has soared 44% since the vote, while Fresnillo PLC FRES, -2.40% Â is up 54%.
SOURCE - MarketWatch
This post was posted in Gold News