Gold prices soared by $30 in 2 days: this is a monthly record!

On January 4 gold prices slid down, and just 2 days later, on January 6, a new monthly record was set, and it was $1,088 an ounce. And this is not the end: the prices keep on growing! What is it, another temporary burst or the beginning of a new golden era?

The growth by $30 in 2 days caused a sensation in the gold market. On January 4 the prices started at $1,060, after which a sharp growth began – and it is still going on! On January 7 the prices climbed already $1,103; moreover, these figures are record for the last 10 years.

The record price boom. Why did they hike?

Bloomberg informs us that the average gold price in January 2016 is 4,4% higher than during the whole last 10 years. The main reason for this is the approaching of Chinese New Year, but there are also other factors that play a role.

Chinese New Year lasts for 15 days and this year starts on February 8. Therefore, January traditionally is a month when Chinese actively buy gold before the holidays to give gifts to their families, making this holiday a seasonal factor. Let's also remember that November, December, January, and February traditionally are positive for gold.

Yet another reason is a nuclear test in North Korea, having took place on Wednesday. When the world found out about the upcoming test, geopolitical situation heated up. Even despite the nuclear trial was a success, the gold prices surged – such factors cannot not to have impact. This is why the situation in the Middle East also influences the gold prices.

Finally, the weakening of yuan supported the growth of the prices, due to investors are fearing to invest in paper securities and are seeking to buy safe-haven assets.

Taking all the factors into account, the beginning of 2016 appeared to be a good time for the gold prices. So don't delay your financial welfare!

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