By: DailyForex.com
The price of gold is rising again slightly as demand for the metal spiked following the shocking selloffs in recent days. Though gold recently hit its lowest price in over two years, buys are slowly showing signs of life, capitalizing on the low costs and helping gold prices stabilize once again. On Thursday gold prices rose 1 percent to around $1,446 an ounce, up 10 percent from last Monday’s low.
Some analysts believe that gold will rise in popularity in Japan, as investors seek a safe haven from the weak local currency and the return of inflation to the region. However, the Bank of Japan’s Governor Haruhiko Kuroda said today that he will not scarp the bank’s 2 percent inflation target despite the country’s currently volatile bond market and the wave of sales of foreign bonds in Japan which is stretching into its sixth straight week.
Morgan Stanley expects central banks to purchase another 655 tons of gold through 2018, though some other analysts expect purchases to be even higher as countries seek to supplement their reserves. Despite price swings such as the one we’re witnessing now, gold has and likely will be considered a safe investment, especially when held for an extended period of time. It also provides the diversity that central banks desire.