Gold is currently at $1,226.60 (+0.02%) holding above the key $1,200 an ounce level amid declines in stocks. Concerns over the global economy and a global equity selloff allowed gold price to gain 16% since the beginning of 2016. However many analysts say that the recent rally was overdone and bullion may lose more. Concerns over Federal Reserve's plan to continue raising rates support the precious metal too.

Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded-fund, rose by 0.38% to 713.63 tonnes on Thursday.