Gold seems to be splitting the investment community down the middle.
Money has been draining out of SPDR Gold Shares, the world’s largest gold-backed exchange-traded fund used by big institutional investors, since Nov. 11. But iShares Gold Trust, a smaller rival favored by individuals investing lesser amounts for themselves, has seen back-to-back weekly inflows.
Large mutual, pension and hedge funds are chasing better returns in rallying U.S. stock markets. But retail investors, including iShares Gold holders, are returning to gold amid renewed concern that President-elect Donald Trump’s protectionism will restrict global trade and growth.
Those concerns were shared by more than two-thirds of traders surveyed by Bloomberg News last month, who forecast prices will gain this year as political uncertainties drive demand for safe-haven assets, including bullion.
Gold may rally to $1,300 at the end of 2017, according to the median of the 26 estimates by analysts and traders surveyed by Bloomberg News from Singapore to New York.