Coronavirus outbreak spurs stampede into gold havens

With bond yields in retreat and real US interest rates sinking further into negative territory, gold-backed exchange-traded funds posted a record run of inflows.
With bond yields in retreat and real US interest rates sinking further into negative territory, gold-backed exchange-traded funds posted a record run of inflows.PHOTO: REUTERS

The stars have aligned for gold as concerns that the coronavirus outbreak may damage growth, hurt risk assets and add to pressures for easier monetary policy combine to trigger a powerful global hunt for havens.

Bullion headed for the biggest weekly gain in over six months on Friday as prices hit a seven-year high. With bond yields in retreat and real US interest rates sinking further into negative territory, gold-backed exchange-traded funds (ETFs) posted a record run of inflows.

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A version of this article appeared in the print edition of The Sunday Times on February 23, 2020, with the headline 'Virus outbreak spurs stampede into gold havens'. Print Edition | Subscribe