As the UK general election approaches, we look back at the gold bullion market’s performance over the past month and ahead at predictions for June.
The market opened on 1st May with a price of £982.44 per troy ounce of gold bullion, a 4.4 per cent decline from the year’s high of £1,028.08. Things have risen slightly since and at the end of the month the price is sitting around £984.01 on the morning of May 30th; buoyed by geopolitical uncertainty on a global scale and investor appetite for a safe haven investment.
The gold bullion market saw its lowest price since the start of this year on Tuesday 9th May when the price dipped to £940.38 following the election of political newcomer Emmanuel Macron as the youngest-ever French president on the 8th May.
Prices rose steadily again to peak at a two-week high of £972.09 on 17th May after the announcement that former FBI director, Robert Nueller, will head up an investigation into Russia’s involvement with the 2016 US election.
Despite the steady increase, gold bullion prices are down around five per cent over the last 3 months, suggesting that now might be a good time for investors to think about whether they want to buy gold bullion as a way of securing their wealth for the future.
Political concerns surrounding United States President Donald Trump aren’t going anywhere any time soon. As a result, demand for gold bullion is predicted to rise as investors seek to protect their capital amid economic uncertainty.
Similarly, the UK general election uncertainty may also prompt gold prices to rise as investors look to diversify their portfolios and seek out an investment safe-haven. Adrian Lowcock, investment director at Architas, told CityWire: “General elections create uncertainty and markets do not like uncertainty.
“Given that the FTSE 100 is trading close to all-time highs and we are seeing an increase in geopolitical uncertainty investors should prepare for increased volatility over the coming weeks and hold a diversified portfolio of equities and bonds as well as property and gold.”
In these times of uncertainty, if you’re investing in physical gold bullion then consider small gold bullion bars as part of your portfolio. Compared to larger bars, they are an easily realisable asset that can be sold quickly should you need to release capital.
Remember to keep a close eye on the gold price and track market prices with our live charts if you’re looking to buy gold bullion.