Gold Rallies 'Spectacularly' in Q1 2016

(IDEX Online News) – The gold price staged a sensational recovery in the first quarter of 2016, rising by 17 percent in dollar terms, according to the latest report from World Gold Council (WGC). In addition to the dollar increase, the gold price also increased in the major trading currencies, rising by 9 percent, 11 percent and 20 percent in the Japanese yen, euro and British pound respectively.

Gold’s best performance in almost three decades saw it significantly outperform other major stock, bond and commodity indices. The WGC said that an extended period of uncertainty, which was one of the five key reasons it identified as being instrumental in the rising gold price, would continue to support investment and central bank demand.

The other factors in the price rise were a hiatus in the rise of the US dollar, the implementation of negative interest rate policies by leading global central banks, the return of pent up investment demand for gold and the price momentum of investors following gold’s upward trend.