The gold price is inversely correlated to both the bond yields and the $US, both of which have ticked higher so far in 2024; hence, precious metals have lost their lustre, sending gold stocks significantly lower as the sector remains largely friendless. At MM medium-term, we are looking for bond yields to turn lower, taking the $US and gold price with them, but at this stage, we are in no hurry to pre-empt the catalyst which will create such a move; hence MM reduced our Active Growth portfolio’s gold exposure in January.
