Investors lured back to gold after surprise rally

New York

GOLD'S longest rally in two years is spurring investors to return to precious metals just as signs emerge that the gains may be petering out.

US exchange-traded products backed by precious metals took in US$1.9 billion this month through Jan 28, the first inflow since July and the biggest since September 2012, data compiled by Bloomberg show. Gold prices dropped 2.4 per cent on Jan 29, cutting this month's rally to 6.5 per cent, and Goldman Sachs Group said this week it expects the metal will fall over the next year.