New gold rush as prices rocket

NEGATIVE interest rates in Japan and Europe and global growth fears sparked a record rush for gold at the start of this year.

Demand for the precious metal reached 1,290 tonnes – a firstquarter record and up 21 per cent on the previous year, according to the World Gold Council. The increase was driven by huge inflows into exchange traded funds, which track the spot price of gold. This helped push prices 16 per cent higher in the period, the biggest quarterly rise in nearly 30 years.

Jewellery buying fell 19 per cent due to a strike by jewellers in India and soaring prices.