Gold rally has momentum but miners will miss out

Significance The 18% increase since the beginning of the year has been fuelled by expectations of monetary easing, recurrent geopolitical tensions, Chinese economic woes, and greater central-bank buying and algorithmic trading. Moreover, the rally has occurred despite US dollar resilience. Impacts Commodity currencies are not matching the gains in gold and other metal prices. The high copper-gold ratio despite China’s industrial overcapacity issues suggests that investors’ speculative focus is moving to copper. For the first time since the late 1990s Bre-X scandal, a gold exploration firm -- Red Pine -- has been accused of manipulating mine tests.