Investors flock to gold, bonds ahead of ‘choppy’ pre-U.S. election trade: BofA

The spread of the coronavirus disease (COVID-19) in New York

LONDON (Reuters) – Investors poured money into bond and gold funds in the week to Sept. 2 and pulled out of equities, BofA’s weekly flow statistics showed on Friday, as U.S. election fears curbed risk appetite.

BofA sees markets remaining “choppy” with the U.S. S&P 500 <.SPX> stocks index hitting 3,630 before the Nov. 3 election.

Bond funds saw $22 billion of inflows with investment grade bonds attracting $16.6 billion, the third highest ever, BofA said. That was fuelled by central bank asset purchases that have been running at $1.4 billion per hour since March, when the coronavirus pandemic roiled financial markets.

(Reporting by Thyagaraju Adinarayan; Editing by Dhara Ranasinghe)

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