Gold

Gold: Spot price has jumped 7.1% over the past 2½ weeks from its five-year low to US$1,161/oz, amid steep losses in global equity markets.

The positive price action came on the back of a global growth slowdown led by China and dwindling expectations on the Fed rate hike in Sep, which suggested that the US economy may not be on track with its 2% inflation target.

Post 2Q filings, prominent US hedge fund manager Stan Druckenmiller loaded a significant ~20% (US$323m) of his portfolio in a gold ETF, double than his second-largest position in Facebook.

The precious metal may also be lifted by a near-term respite in the greenback if the rate hike is delayed, given the traditional inverse relationship between the two.

Currently, the street sees gold price to average US$1,193 in 2016 and US$1,212 in 2017.

SGX counters with significant exposure to gold include miners such as CNMC Goldmine, Wilton Resources and China International, as well as pawnbrokers ValueMax, MoneyMax and Maxi-Cash.

Investors may also get a direct exposure to gold via SPDR Gold ETF (code: O87).