As the dollar weakens against a backdrop of concern over US fiscal conditions, inflows into precious-metals markets, led by gold, are increasing, fueling active investor interest in gold-related stocks.
Whenever the dollar comes under pressure amid concern over US fiscal conditions, funds have increasingly tended to flow into precious-metals markets, led by gold. Against this backdrop, growing investment demand for gold- and precious-metals-related stocks is attracting attention.
New York gold futures briefly fell below $4,000 per troy ounce in July, but turned higher in August and rose to the $4,700 range. Silver and platinum futures also showed similar upward trends, while the cryptocurrency market accelerated its gains in tandem.
The dollar's weakness has been influenced by the risk of a widening US fiscal deficit, with reports highlighting that federal debt reached the $40 trillion range for the first time in history as of 18 August. This has fueled expectations that rising precious-metals prices will support earnings.
Stocks attracting attention include Sumitomo Metal Mining, Toho Zinc and Mitsubishi Materials, which are linked to gold bullion and gold prices. Precious-metals-related ETFs, including SPDR Gold Shares, WisdomTree ETFs and listed physical-gold trusts, are also drawing attention.