Gold for immediate delivery rose 0.6%
During the trading on the London Metal Exchange Wednesday, gold for immediate delivery rose 0.6% to 1303.63 dollars an ounce. Futures for February delivery on the Comex exchange in New York gained 0.4% to 1299.70 dollars. Last week, gold rose 4.7% as investors sought refuge from volatility in currency markets caused by the decision of the Swiss central bank to free the exchange rate of the franc. Since the beginning of the year the price of the metal has increased by 9.8%.
'Master switch to safe assets such as gold. At the moment the market is flooded with news that support metal prices - expectations of weak global economic growth, uncertainty about ECB policy and the introduction of new incentives around the world ", told Bloomberg Mark It, chief analyst at Wing Fung Financial Group.
In the first three trading sessions this week, investors bought 37.9 tons of gold through ETFs backed assets, which is the fastest growth since 2011. Currently this type of investments totaled 1633.5 tons, which is the highest level since November. In early January, they had dropped to six-year low.
Analysts are divided in their forecasts for gold prices. Experts from Goldman Sachs and Societe Generale expect the price to fall, even as the French bank predicts prices of $ 1,000 by the end of the year. Standard Chartered turn however expected rise to 1320 dollars in the fourth quarter.
Gold is seen as a great investment whenever there is the threat of a raising inflation, as it helps people convert volatile assets into a precious metal that will continue to be valuable regardless of what befalls the economy.