Why is 2016 the year of gold?
The recent political and economic upheavals have shaken up the market. What are the consequences?
How are gold prices and the global market reacting? And what do forecasts say about gold? Read more below:
Gold has no limits
Gold prices have increased by about 27% this year, reaching $ 1,375 per ounce in the beginning of July concretely. Investors and experts firmly believe the main factors which have stimulated such a high growth have been Brexit and Fed’s pause in raising rates.
Market players tend to cling to safe-haven assets like gold – a fact that has contributed to its popularity. The low level of bonds’ profitability as well as the increasing volatility in financial markets have also boosted the attractiveness of gold in general. Foreseen by many but believed by a few, the reaction of investors was anyhow striking.
Rise in prices and reserves
The gold reserves of several countries have increased in more than 500 tons in total since January 2016. Apart from that, the results of the UK's referendum have raised the interest in gold as a risk-management tool. Besides, the Federal Reserve's plans for raising rates decelerated, which reinforced the prediction of a rise in gold prices.
What can be expected in the gold market?
Goldman Sachs' bankers foresee an increment of $ 100 per ounce, and the experts at Oversea-Chinese Banking Corporation Limited expect gold prices to grow up to $ 1,400. Some other experts believe that gold can hit $ 1,500 and even $ 1,900 per ounce in the long run. This means that gold prices are likely to keep on rising in the coming months as the risks in financial markets do not seem to back down by now.
A rock-solid asset
We have observed several records over the past months and they do not seem to decrease. That gold prices forecasts are positive is doubtless. Do not waste your time! Start running your own business and earning with gold!
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Soros, Faber, and the Union Bank of Switzerland trust in gold
