Gold will continue to be a strategic element of investment portfolios, generating risk-adjusted returns for the investor.

                                     


As we move into the final month of this eventful year, market sentiment is mixed as investors seem to be weighing the mounting virus case count against the optimism of vaccine breakthroughs. This has boosted risk assets and hurt gold prices which ended November 5.4% lower, at $1776/ounce. Gold prices seem stretched to the downside relative to the fundamentals as markets get carried away on the emergence of effective vaccines.

Risks persists
If you dig deeper, you will find that risks still persist. Efficacy, regulatory approval, large scale manufacturing, costs and distribution of the vaccines still need to be worked out. So realistically the vaccine isn’t coming to local pharmacies for the general public any time soon, while a second wave of the disease is already underway.