FYI: THE price of gold has surged 15% so far in 2016, the best start to the year in over three-and-a-half decades. Some of the rise can be attributed to fundamentals, including cuts in production, increased demand from India and China, and low, or even negative interest rates which make gold more appealing as a store of value. But market psychology is likely the biggest factor contributing to gold’s rally. Investors have historically viewed gold as a “safe haven” in times of turmoil . This year, as markets tumbled in January and the first half of February, investors have piled into gold.
Regards,
Ted
http://www.economist.com/blogs/graphicdetail/2016/02/daily-chart-17
