00:00Time now for our metal spotlight. Gold seeing a rebound now hovering just over $4,600, but it's still trading
00:06well below its pre-war highs at a time when you would expect a safe haven shift.
00:11Jack Ryan covers metals for Bloomberg in London and he joins us now.
00:14Jack, why has gold failed to perform as well as you might expect throughout the war when there's still plenty
00:20of demand from central banks?
00:23Well, this is one of the qualities that gold is famous for, this geopolitical hedge.
00:28And there's a lot of people, I suppose, people who maybe hadn't spent so much time in the market that
00:32when this conflict broke out at the end of February, expected a rally in gold, expected that it might be
00:38able to help to offset some of the losses in equities and other risk assets in their portfolio.
00:45It really failed to do that. It performed very, very poorly through the first couple of weeks.
00:50And there's a couple of reasons for that. One of them is that it has an uncertain track record or
00:57an inconsistent, I should say, track record as a geopolitical hedge.
01:03It's more enduring correlation is it's negative correlation with the dollar.
01:07And so the impact of these high energy prices trickling through into the global economy, the expectation for rates, the
01:15expectation particularly for real rates, that really weighed on gold.
01:20And we've only seen in the last couple of weeks that turnaround.
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