The following is an excerpt from Megan Durisin | March 13, 2016 | Bloomberg.com |
There seems to be almost nothing that will deter this year’s newfound gold enthusiasm.
Even with a turnaround in global equities and signs of a more robust U.S. economy, investors are still piling into the metal. Money managers are holding the biggest net-wager on a rally in more than a year, and holdings in bullion-backed funds have climbed for 10 straight weeks, the longest streak since 2012. All this comes as Goldman Sachs Group Inc., the bank that foresaw gold’s collapse in 2013, continues to stick by its prediction that prices will start to retreat.
Gold is heading for a third straight monthly gain. While the U.S. has been resilient, there’s increasing concern that slowdowns in Europe and Asia could lead to a global recession. When the European Central Bank announced more stimulus last week, it sparked swings in the region’s shares as sentiment shifted between optimism the move could boost growth to concern the measures would fall short. The dollar declined to its lowest since October, lifting demand for alternatives.
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