Precious and Industrial
Metals Inflation concerns, geopolitical tensions and interest - rate levels, especially real yields, contributed to a 1.7 % rise in the spot
price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold
prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to
boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more rate increases in 2018 than previously projected.
In response to fresh measures of economic weakness last week, coupled with an elevated ratio of gold
prices to gold equity
prices and negative real interest rates, the Fund
boosted its holdings of
precious metals shares to about 10 % of assets.