According to the Wall Street Journal, Dow Jones Market Data shows that gold prices have surged 39% this year, putting the annual price increase on track to surpass the gains seen during the height of the COVID-19 pandemic or the 2007-09 recession. Gold futures haven't surged this much in a single year since 1979, when a global energy crisis triggered an inflationary shock that devastated the world economy. Gold prices began their rally nearly three years ago, fueled by massive increases in gold holdings by central banks and Chinese investors. But Western investors have fueled this year's gains, in part by piling into exchange-traded funds (ETFs). Morningstar data shows that net assets in US ETFs tied to physical gold have surged 43% since January. Gold prices rose again in August after Powell hinted that the Federal Reserve would begin cutting interest rates at this week's meeting. Ole Hansen, head of commodity strategy at Saxo Bank, said that as of early September, 47% of hedge funds' net commodity holdings were in gold. (Golden Ten)