Gold soared the largest since 1979

According to the Wall Street Journal, Dow Jones market data shows that gold prices have soared 39% this year, and the annual price increase is expected to exceed the increase during the worst COVID-19 pandemic or the 2007-09 recession. Gold futures have not soared so much in a year since 1979. In 1979, the global energy crisis triggered an inflationary shock, which hit the world economy hard. Nearly three years ago, gold prices began to rise, driven by massive increase in holdings by central banks and Chinese investors. But Western investors have fueled the rise this year, partly because of their influx of ETFs. Morningstar data shows that net assets of U.S. ETFs related to physical gold have surged by 43% since January this year. Gold rose again in August after Powell hinted that the Fed would start cutting interest rates at this week's meeting. Ole Hansen, head of commodities strategy at Saxo Bank, said 47% of hedge funds' net commodity holdings were gold as of early September.