There has been a confluence of factors supporting a gold price rally – from increasing geopolitical tensions fuelled by the Middle East conflict, to progress on inflation, central bank demand, an apparent shift in how the Federal Reserve is leaning on policy, and concerns about economic performance. We can now add a surge in physical demand to that ever growing list, according to new analysis by Heraeus.
Strategists say that traditional supportive factors, such as a much weaker U.S. dollar index or low interest rates aren’t present right now so aren’t responsible for the current price rally.
They said, “Physical gold demand is expected to remain relatively robust in China and India this year, and net positive demand from central banks appears to be extending into this year, with central banks adding 39 tonnes of gold in January, Central banks have been skewed towards net purchases for more than 15 years. Since 2010, emerging market economies have accumulated 4,937 tonnes of gold.”
Gold prices are currently slightly lower than record highs because of short-term profit taking, with prices around £1,6 this morning (Wednesday) – this could be one of the best opportunities to buy you’ll see for a while. Don’t delay.
