MARC HASENFUSS: Trump trade war goes gold
Gold bugs may be eyeing glittery dividends, but it could be better to take cover in well-fortified faithfuls
Maybe in the not-too-distant future my grandchildren will ask: “What did you do in the Trump trade war, Grandpa?” Well, I certainly won’t be able to claim I was awarded a gold medal for bravery in backing bullion to the hilt, persistently refusing to advance further after initial gains. Taking cover in well-fortified Reinet and Wheaton Precious Metals is not what Sgt Rock would do … Yup, you have to get through the (many) skirmishes.
At Thursday’s close, before the Easter weekend, gold shares on the JSE were under siege, with AngloGold Ashanti down 5%, Harmony Gold down 4% and Gold Fields down 3.5%. Over the course of the weekend, the gold price skittered back up on renewed US/China trade tensions, even touching a record intraday high of $3,512 an ounce on Tuesday. Consequently, the JSE opening on Tuesday saw a dramatic swing in gold shares: Harmony surging 8%, Gold Fields up about 7% and AngloGold up 5%. ..
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