Gold prices have rallied by almost 20% over the last 16 months, accelerating in March to reach a record high of $2,195/oz on the 8th of March. A paradox in an environment of high interest rates where holding the precious metal, which has a negative yield relating to storage and insurance costs, represents a significant opportunity cost.
What explains this continuous - and sudden - rise in the precious metal? In a report, Bernard Dahdah, senior metals and mining analyst, looks at various factors that could potentially be behind the current rally and concludes that it is mainly being driven by speculative positions on COMEX.
