Gold prices have surged nearly 30 percent this year, proving the commodity to be a commonly favored safe-haven for investors in the face of increased market volatility and uncertainty.
On Wednesday, gold reached its highest level in 33 months outperforming many other commodities as well as S&P 500 index. The precious metal peaked at $1,372 per troy ounce.
The rally of another precious metal has been even more impressive. The price of silver since the beginning of the year has gained almost fifty percent, trading at over $20 per ounce as of Thursday.
According to the World Gold Council, the marketing organization for the industry, rising gold prices are a result of failed monetary policies.
"A weak Japanese bond auction on August 2 unnerved markets, pushing the gold price up 29 percent for the year in US dollar terms. Many analysts are interpreting weak Japanese government bond demand as a signal investors are starting to lose confidence in the effectiveness of unconventional monetary policies, following increasingly desperate bids by the world’s central banks to reflate the global economy," the organization published on its website.