2 weeks ago

Gold Surge Redirects Investors Toward Cash And Debt Securities

Gold became much more expensive in July.

Its price increased by more than 9 percent.

However, investors did not put most of their gains back into gold.

Instead, they moved a lot of money into safer places such as money-market funds and debt securities.

Money-market funds received a large inflow after losing money in June.

A weaker-than-expected United States jobs report helped gold rise because it reduced fears of another interest-rate increase.

In India, auto and transport companies had a strong month.

Micro-cap stocks performed best, while large-cap funds received substantial new investments despite negative year-to-date returns.

Key facts

Gold performance: Gold prices rose more than 9% in July.
Precious-metal inflows: Inflows declined from Rs 8,680 crore in June to Rs 4,084 crore in July.
Money-market funds: July inflows reached Rs 1,40,390 crore, compared with Rs 65,530 crore of outflows in June.
Fixed income: Fixed-income flows changed from Rs 53,006 crore of outflows in June to Rs 5,947 crore of inflows in July.
Micro-cap performance: Micro-cap stocks returned 4.6% in one month, 15.9% year to date, and 12.7% over one year.
Large-cap flows: Large-cap funds received Rs 14,977 crore in July, up Rs 5,291 crore from June, despite a 3.9% year-to-date decline.
Healthcare flows: Healthcare funds received Rs 737 crore and had gained more than 16.4% for the year.

thehansindia.com · 2 weeks ago