Gold’s enduring high gives miners room to be bold – ZAWYA

Gold’s enduring high gives miners room to be bold – ZAWYA

Gold's enduring high gives miners room to be bold | ZAWYA MENA Edition HomeMarketsCommoditiesArticleGold's enduring high gives miners room to be bold Gold's safe-haven status means it's having a good crisis    Image used for illustrative purpose. An employee holds a 1kg gold bar at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018. Picture taken October 4, 2018. (The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)LONDON - Gold miners have a renewed incentive to swing for the fences. With prices of the yellow metal at a nine-year high amid fears of a surging global Covid-19 caseload, bullion players have scope to start mining the lower grade sections of their reserves - the ones that only make sense during periods of peak market enthusiasm. Taking a punt makes more sense than in previous cycles.Gold's safe-haven status means it's having a good crisis. The unprecedented monetary stimulus that has pushed bond yields close to zero has all but wiped out the opportunity cost of holding the precious metal, which pays out nothing. With ten-year inflation-protected U.S. Treasury yields at their lowest since 2013, gold is now up 20% this year, above the psychologically important $1,800