“Negative rates in Japan and Europe coupled with weak global growth have prompted a surge in interest,” notes one trader as Gold-backed exchange-traded funds saw a record inflow of $7.2bn in February, surpassing the previous high set in 2009, according to BlackRock.
BlackRock’s iShares Gold Trust (ETF) (NYSEARCA:IAU) which saw creation halted due to the inability to meet excess demand for physical has not had one outflow this year.
And SPDR Gold Trust (ETF) (NYSEARCA:GLD) inflows are soaring.
This year $9.2bn has gone into gold-backed exchange-traded products, BlackRock said.
And it appears as The Fed remains on its rate-hiking-narrative path (and the rest of the world goes deeper and deeper into NIRP) perhaps this chart – showing the Dow/Gold ratio breaking significant support – suggests gold will continue to outperform.