Precious metals - Lonely at the top

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Precious metals – Lonely at the top

Surprise, surprise. Shares in miners of precious metals are topping the UK Index this morning as investors return to what the markets regard as safe ports in a storm. Well they aren’t looking for a hedge for rampant inflation are they? That missing piece of the puzzle is being kept well in check by a depressed oil price and stubborn producers the world over. This morning’s ‘precious little’ gains come after a 2-day equity rally came to a head on poor US manufacturing data and the price of Gold broke beyond the $1100 level which could allow it push on towards 3yr falling highs around $1140. Oh and Asian had a shocker overnight with China probably wishing it hadn’t got rid of those circuit breakers. And further support for Gold comes from a slightly weaker USD as markets price in expectations of a dovish Fed message tomorrow given the market turmoil since it delivered its landmark hike in Dec and likelihood it tones down its rhetoric on multiple rate rises this year.

Mike van Dulken, Head of Research

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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Precious metals – Lonely at the top

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