Demand for gold soars in 2016

August 11, 2016 | 6years | NEWS AND INTEREST

Gold demand rose 15 per cent in the second quarter of 2016 compared to last year, as 'US and European investors clamoured for gold bars, coins and especially exchange traded funds (ETFs)', according to the World Gold Council.

The current environment of low and negative interest rates, combined with falling expectations of future US rate hikes and heightened uncertainty worldwide, underpinned investors' positive sentiment toward gold, according to the council's Gold Demand Trends report.

The US election, the EU referendum and possible implications of the Brexit vote, the increasingly parlous state of Italy's banking sector - all these factors have stoked the demand for the safe haven commodity. 'Add to that continued geopolitical unrest in the Middle East and the investment case for gold was cemented,' reads the report.

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