Gold is popping off. As of 2:55 p.m. GMT (9:55 a.m. ET) it’s hovering just above $1,090 (£745) per ounce, and is up by nearly 1.2%, leading the pack when it comes to widely traded commodities.
There’s one simple reason for this: the volatility of the markets right now.
Since trading began for the year on Monday, global markets have been all over the place, but there’s been a broad trend of markets crashing into the red — stocks in Europe and the USA are down today, and oil is at its lowest level in more than a decade.
Gold, traditionally a safe haven for investors, has bucked that trend and started the year with three days of gains. So far in 2016 the world’s most loved precious metal is up more than 2.6%.
This is what gold looks like right now:
Earlier on Wednesday, Business Insider’s Lianna Brinded reported that UBS expects gold to perform nicely this year as investors use it as a safe haven from the madness of the stock market. And if today’s performance is anything to go by, the bank is right.
Traditionally investors flock to buy gold when markets are wracked by uncertainty. That’s because owning a physical piece of gold is generally seen as reassuring, compared to other assets like stocks and futures.