Investors are on a gold rush, as the precious metal has seen the largest four-week inflows in seven years, leading to a price surge.
Research from Bank of American Merrill Lynch shows that the past four weeks of inflows to gold totalled $7.9bn (£5.59bn), which marks the largest four-week inflows for seven years.
Flows into commodity funds have also been positive for the past nine weeks, largely due to the inflows to gold funds, the BAML research shows.
The increased investor appetite has led to a surge in the price of gold, hitting a 13-month high in early trading today. The price hit $1,274.70 an ounce, the highest since February last year.
The rush on gold means it is now in a bull market, having rise by more than 20 per cent since its low last December. This marks the first bull market in gold since 2013.
Volatile markets and an increasing nervousness about central bankers plans for the economy have led many to rush to the perceived safe-haven asset.
Philip Saunders, co-head of multi-asset at Investec Asset Management, says: “While speculation over the US rate hiking cycle provides a comprehensive explanation of the precious metal’s 2015 movements, gold’s recent jump cannot be solely explained by the diminishing likelihood of further US rate hikes in 2016.
“The decision taken by the Bank of Japan to impose negative interest rates was seen as a further sign of fragility, increasing the popularity of gold. It is the first indication in months that gold is reasserting itself as a beneficiary of a ‘flight to safety’ scenario.”