Gold, the precious metal, reached an all-time high of almost $2070 in August, 2020 before a bout of profit taking took the yellow metal down 10% to around $1857. It now trades at around $1925, almost 7% lower compared to its all-time high. But, will gold continue to lose its luster, or is a recovery imminent?
According to the Trefis Machine Learning Engine, which identifies trends in Gold’s price data since 1999, returns for Gold average around 5% in the next one-month (21 trading days) period after experiencing a 10% drop over the previous month (21 trading days). Notably, though, the commodity is very likely to outperform the S&P500 over the next month (21 trading days), with an expected excess return of 2% compared to the S&P500.
Capital Limited (LON:CAPD) provide complete exploration and production drilling solutions to customers within the global minerals industry, with a focus on the African markets.