(Bloomberg) -- Just before the rally in gold took a breather, an exchange-traded fund tracking the metal saw inflows of $1 billion.
Investors poured cash into SPDR Gold Shares (NYSE: GLD ), or GLD, for five straight days -- the longest streak since February 2017, according to data compiled by Bloomberg. Bullion topped $1,500 this week, hitting a six-year high, as traders sought shelter from the intense volatility in financial markets amid concern over a global economic slowdown. The metal dropped on Thursday after China eased fears about a worsening trade conflict.
The decline in gold, however, is seen as short lived by many analysts, who say the metal should still lure investors looking for hedge against market turbulence and more dovish central banks. Goldman Sachs Group Inc (NYSE: GS ). predicted on Wednesday that prices could climb to $1,600 an ounce over the next six months amid haven demand. Last week, Bank of America Merrill Lynch (NYSE: BAC ) said the metal could climb toward $2,000 in the next two years.
“As issues continue to pile up across the globe, whether it’s trade issues, economy issues, gold right now is a safe haven,” said Rick Bensignor, founder of Bensignor Group and a former strategist for Morgan Stanley (NYSE: MS ). “You don’t get money investing in the rate market, stocks are questionable after a 10-year bull market. Gold had a true breakout above $1,380 a month or two ago and it continues to be a place that is gathering more people’s interest.”
Investors also heated up trading for the VanEck Vectors Gold Miners ETF (NYSE: GDX ), or GDX. The fund absorbed about $2.7 billion worth of trades on Wednesday, more than double the fund’s average daily turnover for the past year.
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