Investors go back to gold

GLOBAL events have reinforced the decision by investors to add gold to their portfolios with renewed vigour.

  • Staff Reporter
  • 07 July 2017
  • 05:03
  • News
Investors go back to gold Narendra Modi

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This is the word from the World Gold Council which released its ‘Gold Investor - Summer 2017' report yesterday.
 
WGC chief executive officer Aram Shishmanian notes that this time last year, the UK had yet to vote on membership of the European Union, Donald Trump had yet to be elected as US president and Prime Minister Narendra Modi of India had yet to unveil his dramatic plan to withdraw 86% of the currency from circulation.
 
"The consequences of those decisions continue to reverberate across global markets, in many cases highlighting the attractions of gold," Shishmanian said.
 
"Gold has always been viewed as a safe haven and recent geopolitical uncertainty has underscored the importance of that role. At the same time, bond yields remain at low levels, particularly at the long end of the curve, even as inflationary threats increase.
 
"Again, this draws attention to gold, an asset traditionally associated with long-term wealth preservation."
 
Shishmanian  said that gold's capacity for wealth preservation has long been one of its key attractions in India, the second largest gold market in the world.
 
This week, gold hovered around the $1225 per ounce mark.
 
WTI crude oil was fractionally up at $45.83 per barrel yesterday.
 
In softer commodities, cocoa traded at $1911 per tonne yesterday, tradingeconomics.com reported. Historically, cocoa reached an all-time high of $4361.58/t in July of 1977 and a record low of $211/t in July of 1965.
 
Coffee increased 0.95c per pound or 0.74% to 128.60c/lb yesterday from 127.65c/lb in the previous trading session, tradingeconomics.com reported. Historically, coffee reached an all-time high of 339.86c/lb in April of 1977 and a record low of 42.50c/lb in October of 2001.
 
 

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