Gold

Gold: Gold price traded to a near four-year low, capping its first back-to-back monthly decline of 2014 last week, after prices fell to US$1,161 per ton, its lowest level since Jul ’10. The precious metal is headed for its first consecutive annual retreat since 2000, with prices down 2.8% this year, extending on its 28% slump in 2013. Prices fell, following the Bank of Japan’s decision last week to expand its monetary base from ¥20t to ¥80t (US$724b) annually and triple its purchases of ETFs and REITs, which comes just after the US Fed ended its asset purchases. This has resulted in the USD climbing higher, placing further pressure on bullion. According to Bloomberg, global banks Goldman Sachs and Societe Generale which correctly forecasted Gold’s 2013 rout, are expecting further downside for gold, with Societe Generale highlighting increasing chance for prices to slip to the US$1,000 mark is increasingly, while Goldman Sachs expects prices to drop to US$1,050 by year end. SGX counters with significant exposure to gold include miners such as CNMC Goldmine and LionGold, and pawnbrokers ValueMax, MoneyMax and Maxi-Cash.