Market instability? It’s gold rush time. Investor fears about the impact of volatile markets and global uncertainty seem to be yielding a return to form for gold, typically bought as a hedge or haven, which is up 10% from its lows of August 2018, according to the Financial Times. Analysts see the trend holding up for most of the year, as the surge in holdings of gold-backed exchange traded funds shows an appetite for gold likely precipitated by a weakened USD, fragile stock markets and the expectation that the Fed will hold off on increasing interest rates. Central banks, apparently eager to diversify from the USD, are also buying gold at a level that hasn’t been seen since 2015.

But not everyone is convinced: Heeding the maxim that not all that glitters is, in fact, gold, some analysts remain wary of becoming complacent about a continued increase in the level of ETF holdings. One notes that “If any of the recent tailwinds for gold were to abate, it increases the likelihood for a period of price consolidation.”