| Gold prices are spiraling with a rise in uncertainty in the developed world. In America, the ongoing meeting of the Federal Reserve is expected to decide on whether to raise policy rates. And, there is the June 23 referendum in Britain on whether to leave the European Union ('Brexit').
If rate increase in the US and Brexit does happen, European investors will look for hedging in a safe haven, gold at present. SPDR, the largest exchange traded fund for gold, has seen its holdings rise nearly 40 per cent since January and 9.7 per cent since April. Since the beginning of May, its gold holdings have risen on a net basis by 94 tonnes, indicating investor buying. For, recessionary conditions will accelerate in Britain if it chooses to opt out of the EU, which is positive for gold...............................................Full Article: Source
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