Gold continues price increase as bitcoin struggles

Gold is on the way up, with gold exchange-traded funds (ETFs) at their highest level since May 2013, according to Bloomberg.

The precious metal itself, meanwhile, is on track to hit its highest level since August 2016. It was $US1340 ($1661) an ounce (oz) on Tuesday and today sits at $US1358/oz.

As news of the demise of cryptocurrencies such as bitcoin — down 50 per cent since December last year — takes shape, more traditional commodities are seeing a boost.

Silver, platinum and palladium are also among the list of precious metals that have seen a rise in prices lately, particularly platinum, which has a current price of $US1018/oz, its highest since September.

Rising inflation, a weakened US dollar (currently at its lowest level in three years, and now at 81 cents to the Aussie dollar), and the diminishing reticence of young investors that saw only the negative affects of securities trading during the global crash 10 years ago, have all been cited as reasons for gold’s recovery.

“All of the major precious metals also enjoyed good price gains in overnight markets thanks to greenback’s fall from grace,” a Patersons Securities report said. “The spot $US gold price returned to highs last seen in mid-2016 on robust trading volumes.”

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