Gold stocks came off the boil for the third straight week, tracking a gold price that slipped below the $1200/oz mark for the first time since February. The gold miners' index is now 50% below its recent peak in August, although it is still positive on the year so far. AngloGold Ashanti has dropped back from highs of R301.07 to R155.28 and Gold Fields from R88 to R44.98. The gold price is labouring under a strong dollar that is drawing strength from expectations of higher interest rates in the US. Demand for gold as an asset class tends to suffer in a higher-interest-rate environment. The decline in the gold price gathered momentum about two weeks ago after Donald Trump won the US presidential race, having promised to ramp up fiscal spending, which, analysts say, would accelerate inflation. That would trigger faster interest-rate increases from the Federal Reserve. The world's most influential central bank is widely expected to tighten its monetary policy next month after another ro...
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