Gold Prices Soar To One Year High
Gold prices have quickly soared to its highest level since February 2015 on Thursday. Prices went up 5.8 percent to $1,263.90 an ounce, and trends show it was the biggest in a single day since 2009.
Markets show the bullion has gone up 19 percent this year, which makes it the best performing asset. And because U.S. interest rates don’t pay interest like other assets the appeal for gold is becoming much more valuable, according to Bloomberg.
The World Gold Council released a report today saying uncertainty in the global economy has sent investors into a gold buying fever.
Reports show the demand in gold picking up in the fourth quarter of last year, while central banks reinforced reserves and investment demand increased, when the US Federal Reserve raised interest rates at the end of last year.
Kyle Caldwell from Telegraph reports, “Alistair Hewitt, head of market intelligence at the council said strong appetite for gold at the end of last year continued into January 2016, when concerns about the Chinese economy and plunging oil prices triggered a massive stock market sell-off.”
Investors have a lot to look forward to in 2016. For some reason many people believe the market is going to be more unstable this year. Although most think it’s directly due to the questionable US elections coming up.
But luckily, one of the many benefits of gold is that under geopolitical uncertainty its value retention remains high, and its long term performance is strong in all currencies. To stay connected with more insight on gold and forex trends, join our platinum passport today.
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