By Jessica Menton, markets reporter

Gold-backed exchange-traded funds are regaining their luster.
Investors poured about $2.6 billion into gold-focused ETFs in July as the metal’s price climbed, the highest total since March 2013, data from the World Gold Council show.
The precious metal has surged nearly 20% over the past three months and recently topped $1,500 a troy ounce for the first time in six years as investors flocked to haven assets and the bond market flashed warnings signs about global growth.
The rally came as the Federal Reserve shifted its policy stance and cut interest rates for the first time in a decade. Expectations of lower borrowing costs tend to boost gold, which struggles to compete with yield-bearing assets when rates rise.
Renewed anxiety over slowing global growth and a flare-up in trade tensions have continued to fuel enthusiasm for gold ETFs this month.
About $2 billion has flowed into the SPDR Gold Trust—the world’s largest gold ETF—over the past month, accounting for more than two-thirds of its total inflows in 2019, according to FactSet. Investors put an additional $894 million into the iShares Gold Trust in that span, representing more than half of its 2019 inflows.
Both ETFs have gained roughly 7.5% apiece over the past month, versus gold’s nearly 8% rally and the S&P 500’s 5.5% decline.
Some analysts and investors expect gold to continue moving higher in the near term as investors use it as a hedge against economic uncertainty.
Prices rose 0.2% to $1,519.60 on Thursday, the highest level since April 2013.
“This has been one of the best environments for gold in the past half decade,” said Ryan Giannotto, director of research at GraniteShares. “Lower rates, coupled with uncertainty surrounding Fed policy is going to continue to be a positive for gold beyond the immediate future.”
Shares of smaller gold miners may offer more opportunities for investors compared with their larger counterparts, which are trading close to fair values, according to analysts at JPMorgan.
The firm raised its price targets this week on Agnico-Eagle Mines Ltd., Eldorado Gold Corp., Franco-Nevada Corp. and NovaGold Resources Inc. Each of those stocks have rallied at least 9.6% since mid-July.
Larger counterpart Barrick Gold has also fared well, climbing 15% in that span.
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