2024-03-20 08:30:00 ET
Summary
- Gold prices have reached new highs, with front-month futures hitting US$2,203/oz (March 8, 2024).
- Gold miners have lagged behind gold bullion since their significant drawdown during the global financial crisis of 2008 and 2009 and have largely shown practically no gains over the last two decades.
- Yet, recently, they have shown signs of performing better: over one-month trailing returns to March 8, 2024, miners are up 8.8% versus 7.0% for gold.
By Christopher Gannatti, CFA & Nitesh Shah
Gold prices have reached new highs, with front-month futures hitting US$2,203/oz (March 8, 2024). 1 The rally is supported by a sharp rise in speculative long positioning in gold futures markets, marking a positive shift in sentiment following months of decline. This rally has had a quick ascent. Neither Treasury Inflation-Protected Securities ((TIPS)) nor silver or gold miners have kept up over the past three months. These assets are usually strongly correlated with gold, but the speed of gold's recent moves left these other related assets behind....
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Gold Breaks New Highs. Will Miners Follow Suit?