Why Are Investors Returning To The Gold Market


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Investors across the globe are, with caution, re-entering the market for gold, making a bet against the global economy as gold prices surged this past week to their highest level in eight months, the Economist reported.

Gold was trading at $1,200 an ounce Thursday, spurred by big sell-offs across international equity markets. The rallying of gold prices comes amid a series of concerns across these same international markets, such as falling oil prices and how it will affect emerging markets and debt concerns in the U.S. shale-oil industry.

Renewed fears of deflation stemming from falling oil prices have pushed down interest rates, which also has been good for gold, the Economist noted. On commercial bank deposits, some banks have imposed negative interest rates, which create an incentive to invest in gold.

However, global demand dropped a bit in 2015, and some, such as Goldman Sachs, expect gold will fall in 2016 for the fourth year in a row. Other estimates, however, have gold in one of its best phases in the past 150 years, Fortune reported. Gold prices retreated Friday after Thursday’s surge.

http://www.ibtimes.com/why-are-investors-returning-gold-market-2306499

WHY ARE INVESTORS RETURNING TO THE GOLD MARKET


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Gold was trading at $1,200 an ounce Thursday, spurred by big sell-offs across international equity markets. The rallying of gold prices comes amid a series of concerns across these same international markets, such as falling oil prices and how it will affect emerging markets and debt concerns in the U.S. shale-oil industry.

Renewed fears of deflation stemming from falling oil prices have pushed down interest rates, which also has been good for gold, the Economist noted. On commercial bank deposits, some banks have imposed negative interest rates, which create an incentive to invest in gold.

http://www.infowars.com/why-are-investors-returning-to-the-gold-market/

Gold Bounces On Return Of Stock Market Volatility


The price of gold received a lift on Wednesday afternoon as volatility returned to European and US stock markets. Earlier this week, the yellow metal had fallen from recent highs as stocks regained a measure of stability after global equity markets dropped precipitously during the first trading week of the year.

Traditionally, gold has been perceived as a safe haven asset that investors turn to during times of market turmoil. While this correlation has often failed to materialize in recent times, last week’s rise in gold appeared to be a direct result of large drops in global stocks.

Late last week, this rise in the price of gold reached a two-month high of $1112 just a few weeks after forming a bottoming pattern from December’s multi-year lows around the $1050 support level. The surge broke out above a downward sloping trend line that formed the upper border of the bottoming pattern, as well as the key 50-day moving average and the $1080 resistance level.

http://www.actionforex.com/analysis/daily-forex-technicals/gold-bounces-on-return-of-stock-market-volatility-20160114256039/

GOLD BOUNCES ON RETURN OF STOCK MARKET VOLATILITY


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Traditionally, gold has been perceived as a safe haven asset that investors turn to during times of market turmoil. While this correlation has often failed to materialize in recent times, last week’s rise in gold appeared to be a direct result of large drops in global stocks.

Gold Bounces On Return Of Stock Market Volatility