When it comes to gold products, it appears the demand for a safe haven among investors is continuing to build across the board. For the past few months, gold has maintained a significant uptrend with very minimal fluctuation—in the past six weeks alone, the cumulative gain totaled almost 12 percent. So far this week, gold futures reached a one-week high on Tuesday as equities traded lower. In recent weeks, bullion reached its highest price since March of 2014, a rally of 25 percent higher this year.
One of the organizations that predicted gold’s rally this year is the investment holding company, DBS Group Holdings Ltd., a subsidiary of the Singaporean multinational banking and financial services company, DBS Bank Ltd. In October 2015, they predicted the rally and now, with the United States presidential election looming, they predict that the gold surge will continue and even rise past $1,500 per ounce. Bank of America Merrill Lynch also cited the U.S. election as a factor that could buoy the price of gold to over $1,500 per ounce over the next year.
The Demand for Gold
When it comes to market outcomes, many believe that politics may be dominating economics for the next few quarters. With the Republican National Convention in full swing this week and the promise of heated debates in upcoming weeks, a number of experts and analysts predict that support for gold will increase further. Uncertainty in other parts of the world are contributing as well, such as the attempted coup in Turkey over the weekend. On Thursday, the European Central Bank (ECB) meeting will take place—its outcome may increase demand for gold as well.
With spreading low interest rates, Brexit fallout and global economic volatility also in the picture, it seems demand will not slow down anytime soon.