The past few weeks have been a headache for gold miners, with bullion taking one knock after another. Is it losing its safe-haven status despite increasing uncertainty globally? After the US Federal Reserve this week left interest rates unchanged , the gold price dropped as much as 2% and South African gold stocks followed . The JSE's gold-mining index declined by 2.5%, led by falls in AngloGold Ashanti, Gold Fields, and Sibanye. The Fed said although there was slow growth in the US economy, inflation was close to its 2% goal and the unemployment rate was consistent with its maximum-employment mandate. Analysts expect the Fed to raise interest rates next month with another increase possible before the end of the year. This means investors are unlikely to see gold as a good investment. But Makwe Masilela, an analyst at BP Bernstein, begs to differ. He said although the probability of the Fed raising interest rates would exert pressure on the gold price, investors would still look to ...
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