Gold ends 2016 with a gain of 8.6% after touching six-year lows . There is a global trend and continued buying by local jewellers, gold maintained its upward trend for the fourth day and a significant drop in the U.S. dollar index late this week is prompting some buying interest in the gold and silver markets.
The aftermath of the US elections on November 8 put even more pressure on gold as investor money rotated out of gold and into stocks.
The political variables fueling the bullish outlook experts say is the risk of chaos on multiple fronts: a possible trade war from America’s fraying relationshipwith China, the alleged Russian hack of U.S. political parties, the U.K.’s complicated exit from the European Union, and elections slated in France, Germany and the Netherlands that may see a rise of nationalist groups.
Trump’s impulsive Twitter posts, in which the U.S. president-elect feuded with rivals and made declarations that unsettled allies has aggravated the fears of investors too.
The economic variables owe to the bullish trend overseas and weakness in the dollar that stoked demand for the precious metal as a safe haven asset, persistent buying by local jewellers also contributes to the boost in gold prices.