In recent weeks the correlation between gold and other asset classes – particularly the U.S. dollar and euro currency – have noticeably changed.
While the yellow metal rallied alongside the dollar as a safe haven for the majority of the summer, over the past month it has traded more in line with the euro currency as a riskier commodity.
Analysts at UBS elaborated on these developments in a note to clients on Wednesday.
“Gold has stepped into new territory, acting like a hybrid of a risk asset and a safe haven, as it tries to find a balance between the two opposing forces,” the firm wrote. ”This has made trading the yellow metal very challenging, as while one can have a view on an event such as U.S. payrolls for example, deciphering how gold reacts has become a lot more difficult.”
UBS added that ”While buyers are nimbly returning, it is no surprise that there is caution given the struggle for conviction.”
Aurizon Discovers Two New High Grade Gold Zones at Marban
- The best results from the new High Grade Western Zone include 906.2 grams per tonne (g/t) of gold over 2.9 meters (m) at hole MB-11-198 at a vertical depth of 175m and 5.9 g/t of gold over 15.7m at hole MB-11-195 at a vertical depth of 125m.
- The Eastern Down Dip Zone is located approximately 400m east of the former Marban mine shaft and includes 6.1 g/t of gold over 12.6m at hole MB-11-242 at a vertical depth of 350m.
- A resource estimate will be completed by the end of the year on the Marban property and will be based on new results obtained.
