Gold prices surged over 9 per cent this month, outperforming broader equity markets, while investors shifted gains toward safer assets. Precious-metal inflows declined sharply, whereas money-market and fixed-income funds attracted substantial investments. Micro-cap stocks led equity gains, while large-cap funds saw increased inflows
New Delhi: Gold prices jumped over 9 per cent this month which is about five times the returns of broader equity markets but investors largely moved gains into safer assets rather than reinvesting in precious metals, a report said on Wednesday.
Precious metal inflows dropped from Rs 8,680 crore in June to Rs 4,084 crore in July, while Rs 1,40,390 crore flooded into money market funds against last month’s Rs 65,530 crore of outflows, the report from Vallum Capital said. The immediate trigger for gold price gains was the US jobs report that came in far weaker than expected, briefly reducing fears of another Federal Reserve interest rate hike, the report added.
