As global equities take a hit, gold miners are doing fine

“Gold is regaining momentum,” Gavin Wendt, senior resource analyst at MineLife in Sydney, said in an e-mail. “Until now, gold has played second fiddle to the US currency as investors have sought a safe haven in the face of trade war uncertainty. Now, we see gold’s appeal firming.”

Heading into 2019, banks have lined up to cite bullion as a commodity that’s well placed to rally. Among backers, Goldman Sachs has forecast that the metal may hit $1,350 an ounce in 12 months. On Tuesday, it was near $1,250 an ounce.

“Gold equities are rebounding on the back of renewed interest in gold generally, especially price movements over recent weeks,” Wendt said. “Gold equities have lagged behind other market sectors and are undervalued.”

Bloomberg