| Gold has had a solid run in 2016, gaining 26% so far. In fact, it has been the best-performing asset, trumping major equity indices, investment-grade and high yield bonds and commodity indices. The World Gold Council, in its last report, had stated that gold demand grew 21% to 1,289.8 tons in the first quarter of 2016, the strongest Q1 on record.
ETF inflows were at 363.7 tons, the highest since Q1 2009. Increasing safe haven demand due to a weakening greenback, the slowdown in China, volatile equity markets and the introduction of negative interest rates by several of the world's central banks (including Japan) have turned the tables in favor of gold. Further, a delay in raising interest rates elevates demand for gold...............................................Full Article: Source
|