Gold demand has extended its longest run in five years with investors buying for the eighth straight month

Courtney Goldsmith
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(FILES) Gold bars is displayed at Shinha
Gold prices are on the rise today (Source: Getty)

Gold demand extended its longest run of net demand for five years last month as investors on BullionVault added the yellow metal for the eighth month in a row.

This was the longest stretch in gold buying on the world's largest physical gold and silver online market since June 2012.

New interest growth was strong in the Eurozone, led by Germany, France and the Netherlands.

Adrian Ash, head of research at BullionVault, said: "After Brexit and Donald Trump won their votes last year, political risk continues to drive private investor demand for gold.

"The number of new precious-metals investors starting to buy in the UK has eased back from last summer's post-financial crisis highs. But the Eurozone's busy election calendar is spurring precautionary demand across the currency union, especially in northern member states."

Read more: What next for gold?

As gold prices ended March virtually unchanged in dollars, euros or sterling, the number of BullionVault users starting or growing their gold holdings rose 23 per cent from February's 13-month low, while the number choosing to sell fell 22 per cent.

That pushed the company's gold investor index – a unique measure of actual trading amongst private gold owners – to rebound from February's level of 51.8 to 54.2 for March, with a reading of 50.0 signalling an equal number of net buyers with net sellers across the month.

Read more: Gold prices hit a two-week high as the US dollar edges lower

Geopolitical uncertainties have caused gold prices to rally today above $1,255 per ounce.

"A weak US Manufacturing PMI print raised fresh concerns that the US Federal Reserve may not stick to its hawkish forecasts for three rate hikes over the course of 2017, seeing the non-yielding safe haven asset subsequently benefit," said analysts at Accendo Markets.

Read more: UK investors flock to fintech firm BullionVault as gold prices soar

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