Gold Price Analysis: 11.03 – 17.03 Recent escalation!
The latest analysis of the gold market has triggered many debates including “why do Turkey and the Middle East prefer gold?”
How have gold rates changed during the week? What is the current pricing situation?
Get acquainted with the market analysis.
Turkey and the Middle East go for gold
According to recent reports, more and more people prefer to keep their funds in gold. On March 17th it was announced that in 2016 there has been a significant 4% increase of gold investments compared to last year in the Middle East. The share of gold purchase has experienced a two-fold escalation.
What is the reason for such growth? The most logical answer is an increasing trust in this precious metal due to tense geopolitical situation. As a general rule, when the world is trembling with economic and political instability many turn to gold for being a safe-haven asset.
The Turks also opt for the yellow precious metal. Moreover, they tend to keep it at home, according to the latest news. It has been reported that Turkish people have already accumulated 5,000 tons of gold stored privately instead of using banks. Turkish citizens' mistrust towards the banking system has increased due to high inflation.
It has been noted that people from Turkey not only buy gold jewelry, as traditionally, but also investment-grade gold bars. This speaks to the fact that they are aware about the ways to save money with gold.
These are just two examples of gold's continuing growth in popularity which we witness nowadays. We shall also mention China and India where gold has always been deeply rooted in the culture and history, and gold business development in many regions.
What is the numeric equivalent of escalated gold popularity?
Let's see how gold prices were changing during the last week.
March 11th marked gold trading at $1,250 per ounce.
On Monday March 14th it was observed a subtle increase up to 1,260 dollars/ounce with a consequent upcoming drastic fall in anticipation of the Federal Reserve meeting results, which took place on March 15th - 16th. By the end of the day gold rates decreased to 1,236 dollars per ounce.
On March 15th prices were still under pressure, but at the end of the next day they soared after the Fed's announcement on interest rates. It was decided not to increase the rates due to the weakening US economy. Thus, on March 16th, gold prices reached 1,261 dollars per ounce.
March 17th was noted as a day of slight fluctuations, but eventually prices remained virtually unchanged with 1257 dollars/ounce - and remained in that range.
What will happen next? Follow the updates on our website and learn how to use your gold in the most suitable way.
Please be advised that you have can win 1 ounce, 50 g and 100 g gold bars if you participate in the Global 100 competition. Go for it!
