The ‘Sum of All Fears’ Fuels Gold Rally
- Holdings in all bullion-backed ETFs rise for a third day
- Hedge funds’ bull bets climb almost nine-fold since early July
A worker stands beside multiple gold bullion bars following casting at the Rand Refinery Ltd. plant in Germiston, South Africa, on Wednesday, Aug. 16. 2017. Established by the Chamber of Mines of South Africa in 1920, Rand Refinery is the largest integrated single-site precious metals refining and smelting complex in the world, according to their website.
Photographer: Waldo Swiegers/BloombergThe “sum of all fears” has restored investors’ faith in gold.
Money is piling into gold amid concerns over the U.S. economy that could slow the Federal Reserve’s plans to raise interest rates. Adding fuel to the rally are growing U.S.-North Korea tensions. Last week, investors poured $1 billion into the largest exchange-traded fund backed by bullion, the most since mid-2016. That helped gold close above $1,300 an ounce for the first time this year.