Gold prices have shot up to historic highs – outshining broader markets and driving up demand for gold ETFs.
Investors often use gold ETFs to diversify away from stocks and bonds. Gold has the lowest correlation to the S&P 500 of all asset classes. The precious metal has also proven a popular hedge against geopolitical risk (of which there is plenty) and, at times, against inflation.
Global gold ETFs suffered their ninth straight month of outflows in February, but the trend started to reverse in March.
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