Is gold really losing its lustre?
THERE is no doubt that gold has been one of the hottest investment products this year. According to World Gold Council, gold investment demand has reached a record high of 1,064 tonnes for the first half of year 2016; this was even higher than in 2009 when the financial crisis happened. Gold price has rallied more than 25 per cent since start of this year. Just on the day of the UK referendum, gold price surged by US$100 per ounce. The search times of "Buy gold" has increased by 500 per cent on Google.
However, the impressive performance seems to be losing its momentum. Gold price has been hovering above 1,300 for more than one month, but there is no clear sign for it to break the 1,400 resistance as most of the analysts predicted some time ago. Conversely, people have started to suspect that gold's bull market may just be a flash in the pan.
Is gold really losing its lustre?
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