Tarnished gold may come to shine
Singapore Sales Trader
Summary: Gold has underperformed other asset classes this year, but recent developments may point to a developing bottom. Is it time to start building a position?
What is really happening to gold? Investors have traditionally viewed gold as a safe-haven asset, but with all of the recent geopolitical noises, equity market volatility, and rising interest rates, gold should have proved a better-performing asset class.
The US dollar is one of the key drivers of the gold price movement, and what we have seen of late is positive economic growth and better-than-expected macro data driving a rally in USD. In gold, however, sentiment has soured of late, with a negative trend seen throughout much of this year.