UBS has closed its tactical investment theme on gold miners, citing a correction in gold prices and rising energy costs following the outbreak of conflict in the Middle East.
Key Takeaways
- 1.UBS is closing its tactical investment theme on gold mining equities due to rising energy costs and a lack of sector rerating.
- 2.The Middle East conflict (Iran war) has triggered a correction in gold prices and a simultaneous rise in energy costs for miners.
- 3.While gold prices are still expected to rise, higher fuel and energy costs represent a significant structural headwind for extraction costs.
Table of Contents
- More gold to mine: Theme closure
- Global financial markets
- Global asset class preferences definitions
- Appendix
- Risk information
- Generic investment research – Risk information
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Pietro SantinTatiana BoroditskayaTilmann KolbKayden LeeWayne Gordon
Securities
GDMXAU
Themes
Gold Mining Equity De-ratingGeopolitical Impact on Energy Costs
Regions
Middle EastGlobal