February 2016 Market Commentary | IFA Colchester

February proved to be a tale of two halves within financial markets. Extending the trends seen in January, the Gold price surged as market participants continued to seek refuge in safe haven investments; weak sentiment continued to weigh on global financial markets during the first half of the month.

As markets hit their year-to-date lows on the 11th of February, it was notable that the Gold spot price increased by 4.6% on this day alone. This date represented something of a localised epicentre in dismal financial market sentiment – which is very often the case at local market troughs. At these moments of despair, it is often the time for bargains to be had.

Since then, the second half of the month has been characterised by far more positive trajectory; stock markets have staged a relief rally of almost 10%, and demand for safe haven assets has cooled somewhat (although the graph below is unable to highlight the difference between the weak first half to the month and the more positive second half). Ov