Gold Prices: Worry less as it’s off to a Strong Start in 2016

Although Gold prices haven’t really performed so far in 2015, it’s expected to perform really good in 2016. According to Finance Investment Companies in Delhi, if sources are to be believed, the yellow metal is going to present a great opportunity for the investors in the days to come. 2015 might be a little bumpy, but the gold price forecast for 2016 and onwards looks very optimistic.

Price of Gold This Year:

The price of gold has jumped to 6% this year, making it the best performing commodity of 2016. At $ 1,127 an ounce, is doing pretty well in comparison to its six-year low of $ 1,051.60 an ounce. Gold exchange-traded funds also are on the rise too, growing at their fastest rate in over a year.

Reaction of the Masses:

Generally people flock to gold when they think there are tough economic times on the horizon. So, it’s no surprise that the precious metal’s recent rise has corresponded with the stock market’s slide. In addition to this falling oil prices and a slowdown in China have compounded fears about the economy. But, gold have never historically produced the returns that stocks or bonds have over the long term. The yellow metal had already lost steam in 2015 when the Federal Reserve decided to raise interest rates for the first time in almost a decade, lessening fears of inflation.

 

According to the Finance Investment Companies in Delhi, India due to uncertainty in the global economy, many investors are now betting that the Fed will hold off on its plan to raise interest rates four times. However, in the case of interest rates not raising can of course cause gold prices to take a big dive.