The first full week of 2016 is nearly at an end, and the gold price is on a roll.
It\’s been buoyed in large part by concerns about the Chinese stock market. The Asian nation has been in turmoil since Monday, when trading was shut down following a 7-percent drop in stocks. Then, on Thursday, trading was halted for a second time after another 7-percent fall.
While those events understandably triggered anxiety about China — investors worried about the country\’s economy now have even more reason to be concerned — they did the opposite for gold. By 12:00 p.m. EST on Friday, the precious metal was sitting at $1,100.70 per ounce, up significantly from Monday\’s low of $1,065.
What\’s more, some analysts believe that more good times are in store for gold. “The odds favor a strong rally over the next six to eight weeks or so — a seasonally strong period, traditionally — given the high number of shorts and number of investors waiting on the sidelines,” Adrian Day, president of Adrian Day Asset Management, told Kitco. “We certainly wouldn’t try to play the correction by selling.”
In other words, gold\’s attractiveness as a safe-haven asset has returned, at least for the time being.
| Updated December 2015
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For its part, the silver price largely followed the gold price this week — while it began the week at just $13.88 per ounce, it spiked to $14.37 on Thursday. However, as of Friday at 12:00 p.m. EST, it had declined once again, and was trading hands at $14.
That said, some market watchers see silver faring well in 2016. In another article, Kitco outlines three reasons Capital Economics sees the white metal “stag