Even as the stock market capped off a third day of gains following a foray into correction territory last week, safe-haven assets are enjoying a moment in the sun.
Gold rose as much as 0.6% to $1,337.01 an ounce in the early hours of Wednesday, Feb. 14, reaching its highest level since Feb. 6. Most recently, gold was at $1,331.76 a ounce, up 0.17%.
The jump came as the yellow metal got increased support from one very big name on Wall Street.
Billionaire hedge fund manager Ray Dalio's Bridgewater Associates raised its stake in the SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) during the final quarter of 2017, according to Securities and Exchange Commission filings this week.
Bridgewater, which is the world's biggest hedge fund, increased its holding in the two exchange-traded funds, which are the largest gold-backed funds in the world, just before gold finished off 2017 with its biggest annual gain in seven years.
By the end of December 2017, Bridgewater hiked its stake in the SPDR Gold Shares ETF by 14,091 shares to 3.91 million shares, and its stake in the iShares Gold fund by 34,792 shares to 11.3 million shares.
The filing illustrating Bridgewater's increased stake in gold came following a post on LinkedIn from Dalio on Monday, Feb. 12, stating that the risk of a recession in the next 18 to 24 months is rising.
Dalio last year recommended to investors a 5% to 10% portion of investment assets held in gold. His reasoning for holding that much in a safe haven asset was, at the time, primarily based on political and economic risks.
The SPDR Gold Shares ETF rose 0.16% to $126.30 in premarket trading Wednesday. The iShares Gold Trust traded up 0.04% to $12.77.
Get TheStreet's latest coverage on gold and more precious metals here: