Concerns over economy driving mining resurgence

Increasing concerns over rising economic risks has caused a surge in mining stocks as investors flock to stable assets.

BHP shares jumped nearly 14 per cent over the last two days on the ASX, from a low of $14.18 on Wednesday to a high of $16.14 today while Rio Tinto also followed form leaping 13 per cent from $36.60 on Wednesday to a high $41.50 today so far as the US dollar continues to weaken and the oil price remains subdued.

Anglo American also saw a huge return in strength, lifting nearly 15 per cent on the London Stock Exchange.

Glencore also saw a rise in fortunes, despite its credit rating downgrading by Standard & Poor’s, lifting just over five per cent yesterday.

It comes on the back of a three month high for gold, as investors shift to gold back funds in the largest numbers in three years.

The resurgence of gold is highlighting the metal regaining its role as a safe haven for investors and operators.

It leapt to a three month high earlier this week as the oil price continued to slump.

By February the metal has taken the position of best performing commodity of 2016, as it has lifted by more than six per cent over the past month.

The metal hit spot prices of US$1131.40 per ounce on Tuesday, the highest point since early November last year.

 

 

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