DJE - Gold & Ressourcen PA (EUR)
- As at:
- 142.23 EUR
- 149.34 EUR
In August the DJE - Gold & Ressourcen - gained 1.14%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) rose 7.19%. The fund's weaker performance compared to the benchmark is due to the fact that the last trading day of August (XAU -5%) was included in the fund's performance calculation for September. If the last trading day were taken into account, the fund and index would almost level. Gold mining stocks performed well overall in August. The XAU gold mining index rose 13.01% in US dollar terms and by 14.45% in euro terms due to the appreciation of the US dollar against the euro in August. Gold mining stocks thus performed better than the gold price itself. This gained 7.54% in US dollar terms and rose to 1,520.38 USD/ounce. Calculated in euros the profit was higher +8.45% (1,384.26 EUR/ounce) due to the appreciation of the US dollar. The gold price performed well throughout August and gained further momentum, especially towards the end of the month, as the US-China trade dispute escalated. Gold benefited not only from the escalation itself but also from weak equity markets and falling bond yields. Gold rose above USD 1,500/ounce in early August for the first time since the big sell-off in April 2013 and the price of gold reached a six-year high. The price rise was accompanied by strong ETF inflows. The actions of US President Donald Trump, China and the Fed are mutually reinforcing and are expected to keep gold at an elevated level throughout 2019. Gold is increasingly seen as a safe haven as investor uncertainty about the trade conflict and the already weakening economy increases. The World Gold Council expects central banks to buy between 500 and 600 tons of gold this year. The highest positive performance contributions in August came mainly from positions in the gold mining segment including the highly weighted positions in the mining companies Anglogold Ashanti (South Africa), Agnico Eagle Mines (Canada) and Kinross Goldcorp (Canada). By contrast, positions at the Australian gold mining group Northern Star Resources and the chemical groups Evonik Industries (Germany) and Albemarle (USA) had a negative impact. At around 68% the weighting of gold mining shares at the end of August was slightly higher than in previous month (65%). The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices and also have some growth prospects. Broader commodity and chemical stocks generally performed worse than gold mining stocks in August: the MSCI World Materials index fell -2.13%, the CRB Commodities index -3.36% - both on a euro basis. At the end of the month values denominated in US dollars were partly hedged.