Gold prices rose by the most during the year since 1979

Gold prices have surged 39 percent this year, according to Dow Jones market data, and annual price gains are on track to outpace gains during the height of the COVID-19 pandemic or the 2007-09 recession, according to the Wall Street Journal. Gold futures haven't surged this much in a single year since 1979, when the global energy crisis triggered an inflationary shock that battered the world economy. Gold prices began rising nearly three years ago, fueled by a surge in gold holdings by central banks and Chinese investors. But Western investors have helped fuel this year's rally, in part by piling into ETFs. Net assets in U.S. ETFs tied to physical gold have surged 43 percent since January, according to Morningstar. Gold rallied again in August after Mr. Powell hinted that the Fed would start cutting interest rates at this week's meeting. Ole Hansen, head of commodity strategy at Saxo Bank, said 47 per cent of hedge funds' net commodity holdings were in gold as of early September.