Gold has returned to the headlines as jittery investors turning to it have upped the price.
On Friday it rose to $1,273 an ounce on Friday, up from $1,053 as recently as December, an increase of 21%.
Gold funds reported their largest demand in seven years, resulting in investments of nearly $8 billion in four weeks.
Fears of a slowdown in the US economy and that the Federal Reserve will delay further interest rate rises have been pushing up prices of gold since the year began.
Stock market volatility and geopolitical turmoil have reinforced the notion that gold is the safe haven in unpredictable times.
Prices could continue their upward trend if investor anxiety continues over the possibility that commercial banks might introduce negative rates to customers, effectively charging people for holding their money.
Analysts believe that the European Central Bank will extend its existing negative interest rate. After being introduced in 2014, the ECB’s current rate is -0.3%. It took this stance in the hope of encouraging banks to start lending again.
Deutsche Bank believes prices will remain steady in 2016 and average $1,230 an ounce in the final three months of the year while investment bank Societe Generale says investor fears are overblown so the gold price hike is “unsustainable”.
