It’s usually big news when the price of gold moves into the next higher or lower increment of $100 – but last week’s jump past $1,300 marks the highest value gold has reached in 22 months!
A number of market and political factors have contributed to the increased price. First, some of the uncertainty surrounding Federal Reserve interest rates has faded. Last week, the Fed indicated that it would slow the pace of increasing interest rates, citing concerns over the global economic outlook.
Gold’s momentum picked up further after the Bank of Japan held off from implementing a monetary stimulus, forcing stocks to take a hit and driving more demand toward gold. Lastly, speculation over whether the U.K. will leave the European Union. The vote to remain with the Union or exit could go either way. A vote to leave the Union would likely give a big boost to the gold price due to the resulting geopolitical uncertainty the move would create.
Is the price spike temporary, or the beginnings of a trend? You can review our historical gold price tracker to follow along. If you’re on the go, don’t forget that you can use our app to alert you when gold prices reach a specific point.