- The S&P/ASX 200 Materials sector and gold prices have jumped 3.34% and 5.45%, respectively, in the last one month.
- Newcrest, the largest gold mining company, recorded a 31% increase in June quarter gold production.
- ASX-listed gold space players such as Northern Star and Evolution Mining recorded a strong performance in last quarter.
During the present market conditions, where world economies are facing global stagflation and investors are concerned about a possible sharemarket crash, investment in gold is serving as a safe haven for investors by protecting their purchasing power.
It can be justified by reviewing the last one-month performance of the yellow metal, whose price rose 5.45% to USD1811.5 per ounce as of 16 August 2022. This is also reflected in the performance of the S&P/ASX200 Materials sector, which has gained 3.34% in the last one month.