The spot price of gold reached a new 7 ½ year high, jumping above $1,770. The recent rally on stocks was not enough to sate investors’ appetite for bullion. In fact, the rally prompted further investment demand for gold as an increasing number of traders are viewing the continued gains on stocks as fragile and unsustainable. That is why irrespective of whether stocks are in green or in red on any given day, investors are buying bullion.
