4 Gold Stocks Sparkle As August Sees Weak Jobs Growth
Zacks Investment Research | Sep 05, 2016 09:11PM ET
Weak August jobs data have dimmed hopes of a rate hike in the near term. With this, yield bearing assets lost their appeal and the U.S. dollar lost value. Both of these developments drove gold prices which will act as a hedge against uncertainties cropping from the drop in dollar value.
Gold has raked in stellar returns this year. We are also into that part of the year when returns from gold have been historically high. Hence, it will be prudent to invest in stocks exposed to the yellow metal.
Gold Enjoys a Bull Run
Gold prices held steady on Monday after closing at a one-week high in the previous session. At around 1:59 pm in New York on Friday, gold for immediate delivery rose 0.1% to $1,326.91 an ounce, the highest since Aug 23, according to Bloomberg generic pricing. Prices soared on Friday after moderate hiring in August opposed Fed’s rate hike bets.
With the Fed refraining from further tightening, gold has surged almost 30% this year. Brexit-induced volatility across the broader markets also drove demand for safe-haven assets like the yellow metal (read more: Zacks Investment Research
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