Gold's year-to-date surge is the biggest since 1979

according to The Wall Street Journal, Dow Jones market data shows that the price of gold has surged by 39% this year, with the annual price increase expected to exceed the most severe of the COVID-19 pandemic or the 2007-09 economic recession. Since 1979, gold futures have not surged this much in a year. In 1979, the global energy crisis triggered an inflation shock that severely impacted the world economy. Nearly three years ago, with the strong support of central banks around the world and Chinese investors increasing their holdings of gold, the price of gold began to rise. However, Western investors have played a role in fueling this year's surge, partly due to their influx into ETFs. Data from Morningstar shows that since January of this year, the net assets of US ETFs related to physical gold have surged by 43%. After Powell hinted that the Fed would begin cutting interest rates at this week's meeting, gold prices rose again in August. Ole Hansen, head of commodity strategy at Saxo Bank, said that as of early September, 47% of the net commodity holdings of hedge funds were in gold.