Gold has displayed its best performance in almost three decades, according to a report released yesterday (April 7) by the World Gold Council.
In the first quarter of this year, the price of gold increased in the major trading currencies, rising by 17% in the US dollar, and 11%, 20% and 9% in the euro, British pound and Japanese yen. It was also up 16% in Chinese renminbi and Indian rupee terms, as well as 12% in Turkish lira.
“The return on gold significantly outperformed other major stock, bond and commodity indices,” the World Gold Council reports.
“We believe that market uncertainty and expansionary monetary policies will continue to support both investment and central bank demand. This, combined with an analysis of previous bull-bear cycles, suggests we may be entering a new bull market for gold.”
According to the World Gold Council, the rally in the gold price is being supported by five key factors: ongoing concerns about economic growth and financial stability in emerging markets; a hiatus in the rise of the US dollar; the implementation of negative interest rate policies by leading global central banks; the return of pent up investment demand for gold; and the price momentum created by investors following gold’s upward trend.