by Michael S. McKenna
Trading Floor
The precious metals market is seeing a broad renewal of interest in 2016 as gold and silver prices head higher on a complex mix of global factors whose overall result has been a consistent risk-off sentiment.
The price of gold, for example, has risen from $1,074.61/oz on January 4, 2016 – the year’s first trading day – to $1,257.37/oz today. Silver has risen from $13.87/oz to $17.38/oz over the same period.
Regarding the rally
“The single biggest driver [of gold prices this year] was the exceptionally sharp turnaround in sentiment towards US rate rises and the dollar that we witnessed during the early parts of January,” says Saxo Bank head of commodity strategy Ole Hansen.