Gold’s record-breaking rally stirs debate on bull market longevity once Covid-19 vaccines arrive
- Investors continued their rush into exchange traded funds, which in October sucked in more than double the final inflow in 2019
- Among gold bears, Macquarie Group this week declared the ‘end of the cyclical bull market’ and said prices have probably peaked
Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation. And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.
While prices have fallen a bit since then, investors continued their rush into exchange traded funds (ETFs), which at their peak in October had sucked in nearly 900 tons of the yellow metal this year, more than double the final inflow in 2019.
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In a matter of weeks, everything changed.