Need investment support? Book a call back now
Book an appointment

January 2016 Review

Gold price set to rise amid market volatility

In the early part of 2016, worries of weakening economic growth in China and unrest in the Middle East meant that investors in the global stock market began to turn to the ‘safe haven’ of gold. Some market commentators even predicted that gold prices could ‘soar’ later in 2016.

March Fed Rate Hike is now unlikely

It was reported that the market majority no longer expects another hike in interest rates in the US later in the year. At one time, it was expected that the interest rates could rise by another 25 basis points but the probability of this has now dropped to 22%.

Commodities and gold

It was reported that as oil prices hit a new 12 year low in mid-January, worries over slower market demand growth in China have rattled investors and could positively impact the price of  gold.

Tension in Asia causes a gold price rally

Ahead of the Chinese New Year in February, worries over the Chinese economy and escalating geopolitical tensions causing fluctuations in the gold price. Premiums on the Shanghai Gold Exchange, the platform for physical gold trading in China, were described as ‘volatile’ by some traders, with many suggesting that “demand could pick up sharply if the Yuan depreciation continues”.

Market turmoil spurs biggest Gold ETF purchases in a year

In the first few days of 2016, investors bought 26.8 metric tons of Bullion through exchange traded products – the most since January 2015.

The Sovereign 2016 is launched on the Royal Mint Bullion trading platform

The Sovereign completes the range of 2016 coins available. For the first time, the Sovereign 2016 Gold Bullion coin obverse bears the fifth definitive coinage portrait of The Queen by Royal Mint engraver Jody Clark. The Sovereign is available as both a single coin and in tubes of 25. A half Sovereign coin is also available. You can view the range of Sovereign Bullion coins here

Feefo logo