RBC Predicts Rise of Yellow Metal Price to 1300 Dollars in 2016

Having logged their best quarter in 3 decades, gold prices persistently outplay in 2016. Gold thus happens to be the most sought after commodity in 2016, making it a must buy. Succeeded by a 16.1% gain in the first 3 months, the prices are now up by 20%.

The 16.1% gain was noticed in the first 3 months, with gold prices in 2016 rising up to about 20%. On Monday morning, the prices were noted at 1285.70 dollars with an upsurge of 13 dollars. The trouble of a global economic showdown will continue.

A string of soft economic data arriving from China over the weekend, further added to the boost in price of gold. The industrial production rose to 6% over the year, which was way below the expected 6.5% or 6.8% expected in March.  Retail sales rose by 10.1% in April, becoming the lowest in the past 11 months. New loan data also came in short of expectations.

China’s decelerating economic activity was behind the rough start this year in terms of stocks. Thanks to the slumping prices and extreme volatility, investors fled their stocks and piled in the safe-haven of gold. Prices for gold also climbed this year owing to the acute prices and volatility in the market. Investors increasingly fled stocks and piled into the safe haven of gold.

The demand for gold climbed this year owing to the increasing use of negative interest rates together with the ineffectiveness of all global central banks. Denmark, The European Union, Norway, Japan, Sweden, and Switzerland are all experimenting with the negative interest rates. Results have been mixed so far, leading to the investor’s loss of confidence in Central Bank’s ability to help keep their economies bucked up.

A widespread view of the Federal Reserve, talked about keeping the interest rates lower for a long time has also been a beneficial factor in stabilizing the price of gold in 2016. After the first increase in December, about a decade ago, overall we can come to infer that we will see just yet another rise this year.

This is why we are again highlighting that the best stock of gold is yet to soar again by 2016. What we can amply state is that gold buyers will definitely benefit from this in the long run.

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