Gold price: A gold-nosed 747 touched down at Heathrow today. On board, the victorious Team GB with their incredible hauls of gold medals from the Rio Olympics. There are 26 gold metals and that’s without counting all the individual medals, writes senior bullion dealer, Oliver Temple.
Expect to see more post boxes being painted in gold as a tribute to our athletes in the next week or so. Gold is shining for Britain.
Worried by increasing economic instability, investors – some for the first time – have been turning to the precious metal. Gold prices since the start of the year have been generally climbing but how long can this continue for?
Of course there are many causes that affect the gold price. Like a Team GB athlete performing in a windy stadium, gold’s performance can be affected by even the smallest factors.
Following Federal Reserve Vice Chairman Stanley Fischer’s speech on Sunday about the state of the US economy, the dollar strengthened. And like a see-saw, gold prices dipped to $1331 per ounce. The precious metal did nudge to $1.
A stronger dollar tends to puts pressure on gold, making it more expensive for investors who hold other currencies.
Gold also becomes less attractive when interest rates rise. Markets are expecting Fed chairman Janet Yellen by the end of the week to give some indication of a US interest rate rise.
In Britain, the story is quite different. Several of our banks have already indicated that they will start charging to store cash. Despite more optimism surrounding the UK’s economy following Brexit, we still do not know the long-term financial consequences – if any – of leaving the EU will be.
Another factor which may attract investors more towards gold is the US presidential elections in November. A win by Donald Trump might add to more worries.
Gold Has Climbed
Since January gold has climbed on average more than 26%. Continuing economic uncertainty could mean the precious metal shines even more for investors this year.
With a victory parade taking place soon in Manchester for our Olympic athletics, gold – it seems – is very much on everyone’s minds.
See 5 tips for investing in gold for the first time.
To discuss your gold options, get in touch with one of the oldest bullion dealers today, Gold Investments:
020 7283 7752 | [email protected]
Images from ‘Cedajaer’ -Creative Commons Licence.