- Gold has long been one of the go-to investments when diversifying one’s portfolio.
- Investors often consider it a safe haven during economic uncertainty.
- At the time the market closed on Tuesday, the gold prices witnessed a slight rally at US$2,026.66 per ounce.
Gold has long been one of the go-to investments when diversifying one’s portfolio. Investors often consider it a safe haven during economic uncertainty and have essentially been dealt with in line with risky assets. This means that if the dollar fluctuates, the performance of the market will still be in good form.
With inflation rising in the UK, gold is gaining back traction amongst investors as one of the preferred forms of investment. Gold prices have witnessed a slight rise following the expectation that the Federal Reserve and the Bank of England (BoE) will raise their interest rates to counter the rising inflation.
At the time the market closed on Tuesday, the gold prices witnessed a slight rally at US$2,026.66 per ounce. The interest may again be piqued today (10 May) ahead of the BoE’s monetary policy meeting on 11 May.
Amid this, let’s explore two gold stocks and see how they are faring on Wednesday.
Pan African Resources Plc (LON: PAF)
Pan African Resources Plc is an LSE AIM constituent and largely manufactures 200,000 oz of gold annually. The Pan African Resources on 10 May was witnessing a fall of -2.25% and was trading at GBX 19.14 at the time of market opening. With a market cap of £366.82 million, PAF stock has given its shareholders negative annual returns of -5.77% and positive returns of 18.50% on a YTD basis.
Centamin Plc (LON: CEY)
Centamin Plc is an FTSE 250-With a market cap of £1,274.28 million, and at the time of writing, it was up by 0.18% and was trading at GBX 110.20. The Jersey-based firm primarily deals in gold mining. It has given its shareholders positive annual returns of 26.49%.