The gold price rose by 17% in US dollars in the first quarter of 2016, according to a market update by the World Gold Council. In terms of the Chinese renminbi the increase was 16%, euro 11%, British pounds 20% and Japanese yen 9%.
The World Gold Council attributes the rally in the gold price to five key factors: Ongoing concerns about economic growth and financial stability in emerging markets; 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 Price momentum (i.e. investors following gold’s upward trend).
“History also shows that two consecutive quarters of strong returns have typically resulted in a more sustained rally. So far, we have had one very strong quarter. But inflows into gold look, to us, set to remain robust in second quarter, as the current macroeconomic environment remains supportive for both investment and central bank demand,” says a World Gold Council spokesman.
