Gold has continued its post-Brexit rally, cementing its position as 2016’s top performing commodity.
The metal unofficially entered a bull market last month, after data from the Bloomberg Commodity Index began tracking a fifth above its low in late January at the start of this year.
According to Bloomberg, this movement qualifies it as bull market.
In terms of resources, the Bloomberg World Mining Index is up 24 per cent after a three year rout, much of this driven by BHP which has seen a 16 per cent rise in value over the year to date.
“The broad-based recovery in commodity markets this year has tipped several markets into bull market territory,” Mark Keenan, head of commodities research for Asia at Societe Generale in Singapore told Bloomberg.
The metal is now predicted to breach the US$1400 per ounce barrier, with UBS speculating that it could reach this benchmark in the short, and sit at around US$1340 per ounce in the second half of 2016, according to Bloomberg.
However some are predicting even stronger returns, positing a high point of US$1425 per ounce by the end of September
New data from SNL Metals & Mining has solidified gold’s increasing value, outlining how gold producers shareprices have increased the most out of the world’s top 25 mining companies from April to June, driven by rising gold prices and continued economic uncertainty, which has reinforced gold as a financial safe haven.
Barrick Gold, Newmont, and Goldcorp have seen their shareprices rise 189 per cent, 117 per cent, and 65 per cent respectively since the start of the year.