Investors flock to gold as eurozone woe drags on

Gold exchange-traded commodities (ETCs) saw $500m of inflows in the past three weeks, as investors flocked to the precious metal as the eurozone crisis worsened.

Gold ETCs saw $205m of inflows last week alone, according to ETF Securities, bringing total inflows over the past three weeks to US$503m. It is the highest level of inflows since August 2011. ETF Securities said the increase reflects a combination of bargain hunting by longer-term strategic investors and hedging by those fearful the single currency could be torn apart. The announcement over the weekend that the eurozone has agreed to lend Spain €100bn to rescue its banking system caused most risk assets to rally Monday morning, with gold also benefiting. This week investor focus is l...