Gold has outperformed most asset classes so far in this latest market sell-off. It ended March with a slight $8.51 (0.5%) loss to close at $1,577.18 per ounce. It has performed not only as a hedge against the turmoil that has beset the market, but is also well positioned to remain as one against the inflation that might eventually come from all the central bank and administrative intervention. We expect gold stocks to rise to reflect the underlying strength in the gold price once the panic has subsided and companies are able to return to full production. The sector remains financially strong with low debt and strong cash flow.
Source: MV Index Solutions, Bloomberg, Data as of 03/31/2020
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