The political unrest in Turkey has again plunged the Gold markets in a severe turmoil. The market saw the price of Gold begin to rise again after the news of a possible coup in Turkey trickled in.
The gold market also saw a surge owing to an upsurge in the demand for Gold even in the domestic market. The Bullish Gold Market also pushed the inflation higher thus again pushing the Gold Markets to a higher price bracket in return forming a vicious cycle. This in turn sparked the speculation that the Federal Reserve might raise the interest rates. Gold has seen an approximate increase of around 25% in prices up until this point in this year.
There is also an expectation that Central Banks from around the world might try to increase the economic stimulus so as to overcome any economic downturn as a result of the Brexit vote. Investors would also be looking at the report for German Business Confidence to assess the economic pulse. The thing to keep in mind most probably is that Gold is sensitive to fluctuations in the U.S. rates. The general prices have hiked up to a two-year high. Also, what impact does the Brexit vote have on the U.S. markets remains to be seen. This is of particular interest as it is a known fact that any fluctuation in the U.S. markets will have a simultaneous effect on the prices of Gold.