What the market is getting wrong
Macro worries have created a useful entry point into natural resources equities. This part of the stock market is often misunderstood, presenting value opportunities for selective investors.
Global
What the gold price is telling us
Gold has defied rising bond yields to trade in a range rarely seen before. Is there more in the price than a ‘war premium’? There are reasons to think so. The precious metal may be able to sustain higher prices.
1 Dec 2023
3 minutes
George Cheveley
Gold has defied rising bond yields to trade in a range rarely seen before. Geopolitical risk has been the immediate cause. But is the gold price just reflecting safe-haven demand, or is it telling us something new?
We explore why the precious metal may be able to sustain higher price levels.
General risks. All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results. Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.
Specific risks. Commodity-related investment: Commodity prices can be extremely volatile and significant losses may be made.
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