Gold Performance Improves Despite Headwinds

Mining Weekly, Henry Lazenby

Gold ended Q112 8.6% higher in London, at $1 662.50/ounce (oz), the World Gold Council said on Wednesday in its quarterly gold investment commentary.

The council described the quarter as being "eventful" and, despite increased volatility in capital markets, the metal achieved rising prices in all major currencies, with yen investors benefiting most.

"Although the quarterly return was almost twice the 10-year average of 4.5%, similar gains in gold were seen across all significant currencies, with yen investors seeing a gain of 16.1% in local currency terms," the council said in a statement.

The precious metal's long-term price trend remained unaffected during the quarter, despite a number of headwinds, with primary macroeconomic events such as the broad-based U.S. economic data strength, concerns about China's economic growth slowdown, concerns about the European Central Bank's loans and the future of Europe's bailout potential shaping gold's performance during the quarter.

While gold's price volatility was elevated, it continued to exhibit upside skew. Gold's yearly volatility measured 20.4% during the first quarter, registering 21.8% on the upside and only 16.4% on the downside. . .View Full Article