Euro Pacific Bank

Euro Pacific Advisors’ Portfolio Commentary: Gold on the rise

Published: August 8, 2019

euro pacific advisors fund manager portfolio commentary


Relevant Strategies

  • Gold & Precious Metals
  • Natural Resources
  • Growth
  • Aggressive Growth (and International Growth)

Commentary

Having reached its highest level for six years, the gold price looks set to move higher buoyed by the outlook of further US rate cuts, and the escalating trade war between the US and China. China’s central bank added a further 10 tonnes to its reserves in July while Russia and Kazahstan have also been consistent buyers.

Conversely, the latest US threats have dampened demand for other metals with copper weakening and iron ore down 18% in recent days. The oil price has also weakened and the natural resources fund has made little overall progress this year post January’s 8% gain.

The Gold & Precious Metals strategy was up by 13% in June alone and has been making further strong progress in recent days.

Goldman Sachs has upped its gold forecast 12 months out to $1,600 and should this occur, the precious metal ETCs and exposure to mining stocks in the portfolios should continue to make significant progress.

Portfolio Actions

Gold has recently breached $1,500, recording its largest daily rise in three years. After years of underperformance, we see no need to top slice for now and are riding the momentum until sentiment regarding interest rates turns more hawkish.

Euro Pacific Advisors is comfortable with the level of precious metals exposure in the four strategies above and will consider re-balancing them at a later date.

Regards,

Euro Pacific Advisors Management Team