Three possible reasons for recent rise in gold prices
Wasim Khan - June 17, 2016
Since the start of the month gold price have gone up by almost a $100 per ounce, touching $1,315 yesterday. So what’s been driving the price upwards over the past two weeks?
Source: World Gold Council
There are three possible reasons, first is Brexit. Many analysts believe, if Brexit happens, gold and silver prices will soar. Investors will pull their money from the stock markets and banks, seeking safe-haven assets instead. If the Euro currency plummets, they will also look to get out of cash and into gold and silver. Second, the rising Trump! - The possibility of Republican presidential nominee, Donald Trump becoming a US president and the unknown policies he may adopt.
Finally, it’s the Fed. Federal Reserve’s interest rate policy appears to be on track to remain unchanged for the near term, which has been supportive for gold prices. Yesterday’s, jump to $1315 per ounce came after the Fed held its key interest rate at 0.5%, citing Brexit referendum as one reason for caution.