gold stock price

When there is too much volatility in the world of finance and investments, investors immediately rush towards safer assets in order to protect their capital. That is what seems to be happening at this point due to the turmoil in the global markets. It seems that investors are buying up gold in great volumes in order to safeguard their capital and that is evident from the rise in the price of the precious metal in recent days.

Gold Price Hits 2-Month High

On Monday, the price of gold rose by as much as 1.52% to $1,327 per ounce as investors looked for safer options amid a trade war that could be escalated further by the United States President Donald Trump.

Beijing retaliated with tariffs on $60 billion worth of American goods after the U. S. hiked tariffs on $200 billion worth of Chinese goods and there is no end in sight at the moment.

In addition to that, there are now genuine worries that China could blacklist some American companies from operating in the country and that has spooked markets further. The stock markets in both countries have been on a downward spiral and that has spilled over into the global markets as well, which is why the rally in the gold price is not particularly surprising.

The rise in gold had started off as early as Friday when the price rose by 0.9% and pushed the price up to $1317 per ounce. Stephen Innes from the asset management firm SPI stated that investors are going for safe haven investments.

“We are seeing a lot of traditional safe-haven hedging coming back to the fray.”

SPDR Gold Shares, which is the world’s biggest gold exchange-traded fund and it backed by actual physical gold, rose to a value of $31.5 billion last week. The total gold now held by the fund has risen to 743.2 tons. 

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