We here at Windy City Jewelry & Loan regularly track trends in prices of precious metals such as gold and silver. Last week, gold prices saw a notable spike in response to world news. Gold is on track to have its best month since February, following a big rise in the wake of Britain’s vote last week to leave the European Union. The surprising “Brexit” decision led many investors to flock to gold, perceiving it to be the safest option. Gold’s price hit $1,358.20 an ounce, which is the highest it’s been in nearly two years.
There was a boost in gold prices immediately after Brexit as people sought safe-haven for their wealth during the time of a suddenly uncertain market. Gold is often seen as a more stable investment, so many investors have sold riskier assets in order to put their finances in the trusted precious metal. That is, at least for the time being.
In the week since, that impulse has mellowed a bit and prices have steadied. However, the future is still up in the air. Adding to that uncertainty is the upcoming U.S. Presidential election. Some analysts predict that gold prices might rise again in the wake of those results. For many, the election could signify a massive change that may have similar effects on the major markets as well as the world economy.
As the year goes on, Windy City Jewelry & Loan will continue to keep an eye on trends in gold prices. With major world events significantly affecting investor behaviors, it’s certain to be an interesting year for gold.