PRESS ROOM
Gold finding its shine back
Wednesday 06th January '21
Gold prices fell to around $1776/oz at the end of November – their lowest level since July. Gold has bounced back strongly since then trading around $1956/oz (as of 06 January). Gold’s price behaviour since December resembles its behaviour in March last year when gold bounced back strongly alongside equities. This means that despite the risks faced by economies and markets in the short term due to the spread of the virus, markets appear to be bullish on equities, but investors are possibly mitigating the risks to their portfolios by adding historical safe-haven hedges like gold. This new dynamic of gold rising alongside equities is becoming less puzzling in a world faced with risks but fuelled by highly accommodative monetary policy.