The low interest rates make assets such as gold attractive. Recently, the demand for the precious metal was even higher than in the financial crisis of 2009.
In the first half of the year, gold was more popular with investors than ever before during the period, given global uncertainties and a continued loose monetary policy. From January to June, investors bought 1064 tonnes of gold, according to a quarterly report from the Gold Mine Association World Gold Council.
According to this, demand was even 16 percent higher than in the first half of 2009, when investors fled into gold as safe haven after the financial crisis broke out.The unusually high demand is due in particular to the loose monetary policy of major central banks, according to the report. Low and negative interest rates make investing in interest-free assets such as gold more attractive. In addition, there would be economic and political uncertainties, among other things because of the Brexit vote, the imbalance in the Italian banking sector and the unstable situation in the Middle East.High demand has led to a rising gold price since January. If buyers were able to get an ounce (31.1 grams) for less than $ 1075 at the start of the year, they currently have to pay more than $ 1340.