- Precious metals prices have room to run, says WGC chair
- Miners still chasing share price increases through mergers and acquisitions
Macroeconomic rules say gold should be drawing in huge investment in this inflationary environment. But these rules also say a strong US dollar and equities are bad for the precious metal. The latter themes have won out in recent months, although gold has still held above $1,750 (£1,302) an ounce. It bears remembering the metal was trading at $1,500 an ounce two years ago and under $1,300 three years ago, and gold miners are seeing very high cash flow levels.
Momentum has shifted in the past week, however, with gold hitting a five-month high of over $1,870 an ounce following the US Federal Reserve reporting a 30-year high for inflation for October, followed by a decade high inflation reading in the UK this week.