| Why Gold’s Safe-Haven Demand Remains Tepid | |
| | |
|
Why Gold Is Losing Its Safe-Haven Appeal amid Current Turmoil (Continued from Prior Part) Gold’s safe-haven demand is weak
Gold has not benefitted as much as market participants would have expected from the recent turn of events in China and Greece (GREK). Gold is often touted as the safe-haven asset that investors embrace in times of economic and political uncertainty. Its investment appeal is also upped when alternative asset classes like equities and bonds are not doing well. However, this hasn’t been much of the case when Chinese markets came slumping down.
Other safe-haven assets
Investors have turned to other safe-haven assets, including sovereign debt and the US dollar. US monetary policy expectations continue to drive the gold prices. As we’ve seen in the previous parts of this series, the US economy remains on a gradual but steady path of recovery. This has kept the rate hike expectations more or less intact for later this year or early next year. This along with a stronger US dollar is weighing down on the sentiment for gold. Investors are instead opting for assets like the US dollar, which will not lose its appeal even if the Fed hikes interest rates.
Gold outlook
In addition, India, the world’s number two gold consumer, has been discussing the introduction of gold-price-linked sovereign bonds to lower gold imports. The intent behind this would be to reduce India’s current account deficit and also to monetize gold investments. The US dollar’s steady march upwards along with waning physical demand will be negative for gold (GLD). It will also be negative for gold stocks, including Goldcorp (GG), New Gold (NGD), and AngloGold Ashanti (AU). New Gold forms 1.9% of the Market Vectors Gold Miners ETF (GDX).
For the latest updates, visit Market Realist’s Gold ETFs page.
Browse this series on Market Realist:
|
|
|
VanEck Vectors Global Alternative Energy ETF
|
|
PRODUCER |
CODE : AU |
ISIN : US0351282068 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
AngloGold is a gold exploration company based in South africa. AngloGold produces gold, copper, silver and zinc in Argentina, in Australia, in Brazil, in Canada, in Ghana, in Guinea, in Mali, in Namibia, in South Africa and in Tanzania, develops gold and iron in Australia, in Brazil, in Colombia, in Congo Dem. Rep. of and in South Africa, and holds various exploration projects in Philippines. Its main assets in production are CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO and CRIXAS MINE in Brazil, SUNRISE DAM GOLD MINE in Australia, NAVACHAB MINE and NAVACHAB in Namibia, YATELA, MORILA and SADIOLA in Mali, CERRO VANGUARDIA in Argentina, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG and CRIPPLE CREEK & VICTOR (CRESSON MINE) in South Africa, SIGUIRI in Guinea, TEBEREBIE, IDUAPRIEM, OBUASI and KUBI in Ghana, GEITA in Tanzania and TROUT LAKE MINE and CALLINAN MINE in Canada, its main assets in development are MOAB KHOTSONG in South Africa, MINAS-RIO in Brazil, LA COLOSA and GRAMALOTE in Colombia, KIBALI (KILO-MOTO) in Congo Dem. Rep. of and TROPICANA in Australia and its main exploration properties are HUALATAN and ER in Peru, MKURUMU in Tanzania, 777 PROJECT and RIVARD in Canada, LOUBOUGOULA, GOODPASTER and ALAMOUTALA (SADIOLA II) in Mali, BAMBADJI in Senegal, MORRO VELHO in Brazil and SIANA in Philippines. AngloGold is listed in Australia, in Germany and in United States of America. Its market capitalisation is 1.3 billions as of today (€ 1.2 billions). Its stock quote reached its lowest recent point on November 23, 2018 at 10.00, and its highest recent level on September 20, 2024 at 28.03. AngloGold has 47 442 200 shares outstanding. |