Economic Affairs

Why gold is glittering again

Central bank actions, fiscal deficits and uncertainties have produced a tailwind

After being largely unloved from 2013 to 2018, gold took off on a bull run that picked up momentum after the Covid-19 outbreak. Since mid-September last year, when the action began, the price of gold has gone up by around 60 per cent. Since the start of the year, it has gained close to 30 per cent.

The big news earlier this month was that legendary investor Warren Buffett, who has long derided gold as a non-productive asset (which is true, in a way, because it yields nothing), poured more than US$500 million (S$684 million) into one of the world's largest gold mining companies, Barrick Gold.

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A version of this article appeared in the print edition of The Straits Times on August 26, 2020, with the headline 'Why gold is glittering again'. Print Edition | Subscribe