Gold prices hit 6 month high as investors seek safe havens
Sputnik reported that money managers and investors are ramping up gold purchases in wake of recent sell-offs in stocks across advanced economies, as heightened political risks and trade tensions have boosted the demand for safe-haven assets. Global gold prices are on the rise as international trade tensions, a wave of this outgoing year's currency devaluations, and slowing economic growth across emerging markets have all spurred demand for safety among investors. Gold has met greater demand not least due to declines in stocks across the globe as well, many of which were inspired by heightened political risks.
According to data from Bloomberg News, gold exchange-traded fund holdings increased to over 2,180 tons on 25 December from their October low of just over 2,080 tons. ETF holdings of gold are now at their highest since early July. Meanwhile, the spot gold price rose 0.5 percent on Wednesday alone, to USD 1,271.85/oz. — its highest since late June.
Wealth managers said that gold prices are meeting the greatest demand since January 2017, and gold prices are poised to rise further due to the lingering threats of economic slowdown and political uncertainty across the advanced economies.
Source : Sputnik