Gold has hit an eight-year high as investors try to protect themselves from a market downturn or a spike in inflation.
An ounce of gold just touched $1,800, its highest level since autumn 2011. It’s now gained around 18% so far this year (it was worth $1,515 per ounce in January), making it one of the best-performing assets.
Carlo Alberto De Casa, chief analyst at ActivTrades,says gold is in demand in case equities drop back towards the lows seen in March.
He adds: “It is worth pointing out that in March there wasn’t an immediate panic selling of gold but in the very short-term bullion was sold as investors were looking for easy cash in order to avoid margin calls from other losing positions.
“This could happen again temporarily if there was a violent correction on indices but the long-term direction is clearly positive.”