Gold's bull run unlikely to end soon, analysts say

Gold's bull run is likely to continue as a softer dollar, a spike in market volatility and geopolitical concerns continue to spur investors to seek refuge in the safe haven asset, analysts say.

- Somshankar Bandyopadhyay

According to data from the World Gold Council (WGC), the yellow metal rose 6.6 per cent month on month in April, having breached the all time record and closing above $3,500 per ounce for the first time. While the metal pared gains later, it still closed the month above $3,300 per ounce.

Gold is up by nearly 27 per cent year to date, significantly outperforming major asset classes.

Against this backdrop, investment flows via gold exchange traded funds (ETFs) have significantly ramped up. "In Q1, gold ETFs amassed $21 billion of inflows - the strongest quarter in three years - with an additional US$11bn in April. Collectively, US funds have led the way, but Chinese funds have increased their holdings by a whopping 77 per cent year to date," a report by the WGC said.