Gold is becoming a more attractive investment in the wake of a massive selloff of global financial assets, reports Bloomberg.
From Bloomberg Business:
The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety.
Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most-bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $3 billion in 2016.
Bullion has seen a revival of its appeal as a haven after being mainly ignored last year in the face of the Paris terror attacks in November and the Greek bailout negotiations in July. This time around, concerns about global markets will support the metal, Citigroup Inc. analysts led by Ed Morse said last week as they raised their 2016 price forecast.
Read the rest of the story here.