10 reasons why gold price will continue to rise

The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011.
Globally, too, following the UK votes favouring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon. After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce.
There are several factors that suggest gold will be a preferred asset for all kind of investors – retail, institutional or even central banks.
1. In terms of sterling, the price of gold soared nearly 20% to GBP 1,000/oz on Friday, which fell later. However, it again went up today as lower pound meant higher gold price in pound terms, a better hedge against currency for UK investors. Sterling or British pound is trading at three-decade low.
2. Bank of England and other central banks are preparing to take all actions to address fears in market, which according to the World Gold Council report released on Friday evening said, ‘Central bank action has already capped the gain in other safe haven assets.’ This means gold will shine.

This post was published at TruthinGold on June 27, 2016.