A gauge of mining shares is extending gains after its best December since the financial crisis as investors flee to haven assets amid a slump in the broader equities market and a U.S government shutdown. The BI Global Senior Gold Valuation Peers jumped as much as 2% Thursday to the highest since May, with bullion set for a sixth straight advance.
‘‘The yellow metal is in demand due to the fact that almost everyone is looking for safe-haven assets,’’ Naeem Aslam, chief market analyst at Think Markets UK, said by email. “Gold miners are laughing all the way because the entire landscape has become more attractive.”
Volatility in equities, concern about a broadening US-China trade conflict and a softening dollar have underpinned a rally in bullion. The trade showdown is starting to have an impact on economic activity, after Apple Inc. issued a warning on its outlook and factory data weakened.
Bullion for immediate delivery rose 0.5% to $1,291.29 an ounce at 1:42 p.m. in New York, after touching the highest since mid-June. On the Comex, gold for February delivery settled up 0.8%. In December, the BI miners index jumped 12%, the most for that month since 2008. Harmony Gold Mining and AngloGold Ashanti paced gains on Thursday.
Investors seeking havens have also been buying silver. The white metal touched the highest since July on Thursday.
“Looks like silver has gained momentum because of gold,” Aslam said.
© 2019 Bloomberg L.P