"Investors stashed a net $7.4bn of cash into gold-backed ETFs last month, according to data from the World Gold Council — adding to the record $40bn they invested in the first half of the year. Gold would benefit as bond yields continued to slide and inflation started to materialise, said Jim Luke, a fund manager at Schroders. US 10-year real yields, which take into account inflation, fell to an all-time low of minus 1.02 per cent this month. “We’re in a world where inflation will move above targets and real rates will be significantly lower than now,” Mr Luke said.
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Governments globally have announced $20tn worth of stimulus to combat the impact of coronavirus, according to Bank of America, a little over 20 per cent of global gross domestic product.
https://www.ft.com/content/566dd8f7-7efe-45b6-8a44-b20f7f0f283e
August 04, 2020