Gold just had its best quarter since 1986

Gold prices since 1986 - best quarter

Gold just had its best quarter in three decades.

The price of the commodity jumped by 16.5% to $1,234 in the first quarter, it’s best quarter since 1986.

US stocks have managed to rally buttocks in Europe, the UK, and Japan are still stuck in the red.

The SPDR Gold Trust ETF surged 16%, its best quarter since launching in 2004.

Investors often turn to gold when they are worried about the current and future state of the economy. They flocked to gold at the start of the year when the Dow continued to slide.

“You had the panic trade where when people see volatility they rush to safe assets like gold. There was this perfect storm of events,” said Nicholas Colas, chief market strategist at ConvergEx.

Fear caused investors to invest $13.4 billion into gold assets during a recent 11-week stretch, the largest sustained weekly inflow since the 2009 financial crisis, according to Bank of America Merrill Lynch.

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That’s a big jump from the final quarter of 2016 when investors pulled $2.6 billion from gold.

As many countries start to flirt with negative interest rates and the Chinese government continues to offer cheap debt vehicles for businesses, investors may continue flocking to gold in the second quarter of 2016.

The new Deloitte CFO Survey for the first quarter of 2016 shows that finance officers at some of the biggest companies in North America are losing their confidence in the national and global economy.

The World Gold Council thinks the negative rate trend may result in higher demand for gold because it “erodes confidence” in currencies and increases “uncertainty and market volatility.”

While the price per ounce has increased, the commodity is still far below it all-time high of $1,923, which it set in September 2011.

The gold market has eased considerably since markets started to rebound in mid-February, trading down 1% since February 11.

Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated.