Delaying our Gold Market Commentary until after the possibly volatility-inducing US election, we instead take stock of some interesting statistics regarding October's and the year-to-date stellar run-up in gold prices.
Geopolitical risks have been elevated in recent years. And our analysis shows that spikes in geopolitical risk usually lead to equity market sell offs. While risk assets suffer during these periods, gold has delivered robust returns as an effective portfolio risk diversifier. And we believe gold can continue to benefit investors’ portfolios in today’s world as a geopolitical risk hedge and return enhancer following its stunning performance y-t-d.
Gold finished the year on a high, literally and metaphorically, as the LBMA Gold Price PM reached a new historical record of US$2,078.40/oz on 28 December – the final afternoon auction of 2023.
Against the backdrop of turbulent markets, geopolitical risk and Fed rates hikes, gold closed 2018 on a strong note, outperforming most global asset classes. World Gold Council’s Joe Cavatoni and John Reade discuss 2018 trends and explore key dynamics likely to influence gold performance in 2019.
