Why gold thrives in a weak economy

WE'RE currently in the third quarter of 2016 and so far it has proven to be tumultuous for the global economy.

Several events have contributed to the global economic uncertainty; adoption of negative interest rates by central banks, UK's referendum on its EU membership, the US presidential elections, continued geopolitical unrest in the Middle East.

Amid all this economic and financial uncertainty, gold prices has surged strongly, rising by more than 30 per cent since the start of 2016. This meteoric rise in the price of the precious metal has further shown that gold continues to thrive during adverse economic conditions as investors the world over continue to see gold as a safety asset to hedge against uncertainty.