Bullish gold gain 24% year-to-date

Thanks to a relaxed global monetary policy.

Gold remains bullish with 24% YTD increase as unprecedented loosening of global monetary policy and Fed’s delayed raising of US interest rates fueled upsurge. Brexit, the jittery global markets, and the looming US election have also added to demand for bullion as a haven asset.

According to SGX, gold has turned into one of the best-performing assets over the first six months of 2016, the most since 1980.

Of the five gold mining stocks categorised by the Global Industry Classification Standard, the three biggest have a combined market capitalisation of $439.3 million. These three largest gold stocks have averaged a total return of 75.6% in the 2016 YTD, outperforming the SPDR® Gold Shares ETF’s total return of 19.0%, and the benchmark Straits Times Index’s total return of 2.0% over the same period. This brings their average one-year and three-year total returns to 78.1% and 27.9% respectively, SGX said.

Reflecting the commodity’s stellar performance, the SPDR® Gold Shares ETF registered a 2016 YTD turnover of $515.2 million, up 58% YoY. Its 19.0% total return has made it the third-best performing ETF in the YTD, SGX added.