Monday, May 16, 2022

Gold hits Year-high as Investors Look for Safety

By on February 11, 2016

LONDON – Investors turn to gold as a safe store of value in times of market stress. On Thursday, the precious metal’s price rose to its highest in a year.

It was up 2.7 percent at $1,227.70, just off the year-high of $1,230.40 touched earlier in the day. The last time gold traded higher was in February 2015.

“Gold’s status as the ultimate safe haven asset has well and truly been confirmed, yet again,” said Fawad Razaqzada, an analyst at Forex.com.

The price of gold is now 47 times the price of oil, a record, according to Deutsche Bank analyst Jim Reid. The previous record ratio of 41 times was in 1892 and the ratio was only 12 in May 2014.

While gold is gaining support, oil prices continue to head south. A barrel of benchmark U.S. crude is down 4 percent at a 13-year low of $26.34. Brent, the international standard, fell 1.7 percent to $30.33.

You must be logged in to post a comment Login