With fear firmly in grip on the global stock markets, gold price has seen an explosive start to 2016. The precious metal has surged an impressive 17 percent after bottoming in December 2015. Investors are fleeing the stock market and pouring massive funds in safe haven like gold and silver. Currently, gold is trading at spot price of USD 1238.40 per ounce. While it is still premature to claim that gold is in bull market, one thing that is certain is that globally, gold is still regarded as the safe haven in the midst of stock market chaos.

According to World Gold Council, the global demand for gold in 2015 remained flat as compared to 2014 at 4,212 tonnes. In spite of a weak start to the year 2015, gold demand rebounded in the 2nd half of 2015 due to huge buying from central banks and China. In fact, for China, the overall gold demand rose by …