uploads///faaadccafdfd

Global Markets Lost Their Luster in 2016: Gold and Silver Shine

By

Jan. 22 2016, Updated 5:06 a.m. ET

Markets slammed, gold strengthens

Global markets entered 2016 weak-kneed, but gold and silver shined. Gold has risen 2.9% and silver has risen 0.78% since the start of the year. Platinum and palladium fell 7% and 13.3%, respectively. The S&p 500 has fallen almost 8%, and crude oil has fallen a whopping 20.6% since the beginning of 2016. Volatility of the markets rose to almost 27% from 18% at the end of 2015.

Gold and silver are ranked second and fourth, respectively, on the S&P GSCI (Goldman Sachs Commodity Index), which tracks 24 commodities including gold, silver, crude oil, Brent oil, wheat, and copper. The graph below shows the historical performance of gold, depicted by the SPDR Gold Shares (GLD) against the S&P GSCI.

[marketrealist-chart id=978243]

Article continues below advertisement

Risk aversion sparked

Although the index-based ETF tracking the commodities market fell, gold has buoyed these losses and emerged as a winner. GLD rose 2.6%  and the iShares Gold Trust (IAU) rose 2.7% so far in 2016.

Gold-mining stocks gave a mixed performance. They outperformed most stocks in the current stock market turmoil. Shares for Barrick Gold (ABX), AngloGold Ashanti (AU), and Agnico Eagle Mines (AEM) rose 3.3%, 3.2%, and 2.7%, respectively, during the past trading month. Most miners have seen losses during the same time frame. Even if gold performed comparatively well, the mining sector is still facing hard times recovering from bottomed-out prices.

Advertisement

More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.