Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

As Global Equities Take a Hit, Gold Miners Are Doing Fine

Global equity markets are getting beaten up, but gold miners have been spared as haven demand swells and bullion’s outlook brightens.

Newcrest Mining Ltd., Australia’s top producer, rallied as much as 2.3 percent on Tuesday, while South Africa’s Harmony Gold Mining Co. Ltd. was the biggest mover, rising 3.8 percent. Canada’s Barrick Gold Corp. -- which is taking over rival Randgold Resources Ltd. -- has surged 28 percent this quarter. The gold miners index is at its highest in two months.

Gold and its producers are catching a bid after the S&P 500 Index hit the lowest since October 2017 on Monday, dragging a gauge of world stocks to a 19-month low. The metal has been supported by concerns over slowing global growth, and speculation that the Federal Reserve may pause its tightening cycle in 2019. Investors have been boosting holdings in bullion-backed exchange-traded funds, and spot prices are poised for a third monthly rise.

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