Global fears could see gold continue to rise
Duncan Richardson, News Editor
16 Feb 2016, 10:50 a.m.
With global equities experiencing their worst start to a year on record, the recent rally in world equities will have calmed the financial markets. Safe haven assets such as gold and government debt have benefited as investors rushed to protect their capital.
Gold has been the best performing asset class in 2016, as traditional paper assets have faltered. On Thursday the gold price saw its biggest daily gain since the 2008 economic crash and has advanced by £112 per ounce since the turn of the year.
With volatility in the financial markets expected to remain amid growing concerns over multi decade low oil prices and slowing growth in China the gold price is expected to remain supported.
Despite the gold price falling back in recent days, physical gold buying in Asia remains robust as investors take advantage of lower price.
Asian countries view gold differently to most of Europe and North American, they see gold as real wealth not just a safe haven asset class. With instability in the financial markets expected to continue the short to medium outlook for the gold price remains bullish.