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Could Investors’ Extreme Bearishness on Markets Turn Them to Gold?

Annie Gilroy
Could Investors’ Extreme Bearishness on Markets Turn Them to Gold?

As we highlighted in the Can Gold Continue to Rise on Equity Market Weakness?, as volatility (VIX) increases and markets worry about growth prospects, gold (GLD) (GDX) investments usually increase. According to a report by the World Gold Council, holdings in gold ETFs rose for the second consecutive month in November to 21.2 tons to a total of 2,365 tons. The renewed buying interest from investors was on account of increased market volatility and the equity market sell-off.