Gold Resumes Rally as ETP Assets Swell Amid Demand for Haven
- Bullion's negative correlation to U.S. equities strengthens
- Holdings in gold-backed funds reach highest since May
Is It Time to Start Shorting Gold?
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Gold futures advanced for a second day, extending a 2016 rally as U.S. equity declines added to demand for haven assets.
Bullion’s negative correlation with the Standard & Poor’s 500 Index of shares has increased to near the strongest inverse relationship since April. Investors are adding their holdings of the metal through exchange-traded products as they seek protection from wider market volatility. Gold futures are up 16 percent in 2016, the most among the 22 components of the Bloomberg Commodity Index.