Gold prices rise as fears of stock market crash take hold

Thursday, April 6, 2017
By Paul Martin

GOLD prices have jumped amid growing fears over-inflated stock markets are on the brink of crashing amid a cocktail of risks that includes a key meeting between Donald Trump and Chinese President Jinping Xi.

Thu, Apr 6, 2017

Britain’s top stock market the FTSE 100 fell by around 0.5 per cent on Thursday after losses in Asia and on Wall Street overnight.

At the same time, gold values have pushed higher to sit at $1,254 (£1,003) – now up from around $1,200 (£960) just one month ago.

The precious metal is traditionally a safe haven for cash in times of market turmoil and downturns.

Experts have predicted prices could now hit $1,300 (£1,040) if fear continues to rise over sky-high stocks.

It comes as investors were last night spooked by the American central bank.

The US Federal Reserve signalled it is set to start withdrawing measures to support markets put in place at the height of the financial crisis.

Minutes from the policymaker’s most recent meeting showed policymakers discussing how to cut back its money-printing measures that pushed its balance sheet to $4.5trillion.

So-called Quantitative Easing has helped boost stock markets in recent years – and a reversal could trigger a reversal.

Share prices have also been more recently propelled to record highs by promises of tax cuts and increased state spending under Mr Trump’s presidency.

However, faith in the US president has started to waver in recent weeks after he failed to get his healthcare bill signed off by Congress.

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