Investors Pour More and More Assets Into Gold on Virus Alarm

Investors Pour More and More Assets Into Gold on Virus Alarm

imageCommodities5 hours ago (Feb 26, 2020 02:05AM ET)

(C) Reuters. Investors Pour More and More Assets Into Gold on Virus Alarm

(Bloomberg) — Global investors are stashing more and more assets into gold as the coronavirus outbreak spreads and appetite for risk takes a hit.

The global tally of bullion in exchange-traded funds swelled by the most in more than a month on Tuesday as equities sank. That was the 25th consecutive day of inflows, a record. At 2,624.7 tons, the holdings are the largest ever.

After surging 18% last year, gold has extended its rally in 2020, with prices hitting the highest since 2013. The haven has been favored as the virus outbreak has spread beyond China, threatening a pandemic and slower growth.

Goldman Sachs Group Inc (NYSE:GS). has said that should the disruption from the disease stretch into the second quarter, prices may rally toward $1,850 an ounce. Spot bullion was last at $1,645.20.

A global recession is likely if the coronavirus becomes a pandemic, according to Moody’s Analytics Chief Economist Mark Zandi. The odds of that outcome now stand at 40%, up from 20%, he said in a note.

Investors Pour More and More Assets Into Gold on Virus Alarm

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