Central Bank uncertainty fuels demand for Gold
The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks on rising concern about central bank policy making worldwide. Stan Druckenmiller, the billionaire investor, said this month while the bull market in stocks is exhausted, gold is his largest currency allocation. Negative interest rates and concerns about prolonged competitive currency devaluations have been key contributors to the demand for the safe haven asset. After the Fed raised rates in December, investors have been scaling back expectations of further increases amid concern about the strength of the global recovery. The chances of a hike at next month’s policy meet are just 4 percent, down from 75 percent at the start of the year. Read More: (VIEW LINK)
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