Bad news boosts the gold price

Market jitters have seen investors push the gold price higher.

The gold price has bounced by 5% this month, marking the second time in a year that the $1,200-an-ounce level has provided support, as the markets have suffered a scare over global growth prospects. The jitters spurred the biggest rush into US gold exchange-traded funds (ETFs) since July.

Falling real (after-inflation) interest rates, a result of falling bond yields, have also helped the higher real rates are, the less appealing gold is, because it offers no yield. Solid demand for gold bars and jewellery in Asia, notably in the run up to the Diwali festival in India, has also buoyed prices.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.