| The year has begun on an optimistic note for gold, up three per cent in a fortnight when most other asset classes are down, with some like crude oil having plunged over 20 per cent and equities down sharply. The unusual thing about gold's rise is that the dollar index has not fallen during the period. Normally, they move inversely. This suggests gold is emerging as a safe bet in times of uncertainty.
Uncertainties could emerge in various forms, from terror attacks or crashing oil prices or the G7 central banks losing their credibility. Although many still see the recent spike in gold as temporary given that the yellow metal is seeing resistance at higher levels, voices have started emerging in support of gold. If uncertainties increase, some experts believe gold could rise as much as 20 per cent in 2016...............................................Full Article: Source
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