Long cold winter ahead for gold, billions invested by Allan Gray, Investec
With prices stuck near a five-year low, traders are turning their back on gold amid muted inflation and a resilient U.S. economy.
With prices stuck near a five-year low, traders are turning their back on gold amid muted inflation and a resilient U.S. economy.
The longer-term graph of the gold price is ugly. Down a full third in the last two years, bullion failed to react to any of its normal stimuli from inflationary fears around Quantitative Easing through to geopolitical concerns sparked by Russia’s invasion of Ukraine.
Commodities producers bring on new supply that bullish demand will be swamped by the increased output – coal, iron ore, refined oil products, and copper.