(Bloomberg) -- With stock and bond markets in turmoil, investors are pushing more money into gold.
Bullion holdings in ETFs have climbed for 15 consecutive days, the longest run since September 2012, according Bloomberg. Gold, considered a safe haven and coming off its best week in more than two years, is benefiting from worries about the health of China’s economy, plunging oil prices and uncertainty over U.S. interest rates. South African mining stocks rallied to an almost three-year high Monday.
“There’s just a little bit of fear creeping in over the world economy,” Mark O’Byrne, executive director of Dublin-based brokerage GoldCore, said. “There’s sign of the solid uptick we’ve seen in sentiment towards gold. Who knows whether it will last, we’ve seen these rallies run out of steam before.”
Gold is the best asset in the Bloomberg Commodity Index this year, rising 11% to the highest since October. European stocks have fallen for six days, futures point to declines in U.S. shares and the cost of protecting European banks’ and insurers’ senior debt is on its worst run since March 2013.
“We’re not surprised to see gold have a mild pull-back after pushing through its 200-day moving average and over $1,150 last week,” Jordan Eliseo, chief economist at trader Australian Bullion in Sydney, said by e-mail. “Physical flows may be a little light this week with China on holiday, but we expect the market to consolidate recent gains.”
All five companies in the FTSE/JSE Africa Gold Mining Index rose, with Pan African Resources up 14% and AngloGold Ashanti advancing 10%. The index climbed 7.3% to the highest since April 2013.