The gold price is trading at a new four week high as investors shy away from risky assets and turn towards the ultimate safe haven.
Concern over global growth continues to drive stock indices lower. Yesterday the Dow Jones Industrial Average, the world’s largest stock market, fell 1.35%.
The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings increased yesterday by 1.79 tonnes, its first inflow since September 10th.
The inflows started after Fed officials voiced concern that the current economic downturn could delay an increase in U.S. interest rates. Historically the gold price performs well in a low interest rate environment.
The technical picture for the gold price is also bullish after recently forming a triple bottom formation. Some traders are anticipating the price will rise sharply once the $1,240 resistence barrier is broken.