DJE - Gold & Ressourcen XP (EUR)
- As at:
- 118.23 EUR
- 118.23 EUR
In May the DJE - Gold & Ressourcen rose 0.56%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) increased 5.82%. The difference between fund price and benchmark is due to different calculation dates. Taking into account the last trading day of May the fund price would have risen by more than 4%. Gold mining stocks performed positively in May. The XAU Gold Mines Index rose 5.72% in US dollar terms and 4.19% in Euro terms due to the depreciation of the US dollar against the euro in May. As a result gold mine stocks outperformed the gold price itself. The gold price gained 2.60% in US dollar terms and was quoted at USD 1,730.27 per ounce. Calculated in Euro the profit of the gold price was lower at 1.39% and EUR 1,560.99 per ounce due to the devaluing US dollar. At the beginning of May the gold price initially continued its positive trend and then rose to a seven-year high in USD terms and a new all-time high in Euro terms. However, from mid-May onwards signs of a slight economic recovery in some economies and an aid package of EUR 750 billion planned by the EU Commission put the price of gold under temporary pressure. Towards the end of the month, however, the gold price rose again, partly due to the worsening of the situation in Hong Kong and thus ended the month under review in positive territory. Other factors driving the gold price include doubts about a V-shaped economic recovery - reinforced by clouding US economic data -, ongoing speculation about negative interest rates in the US as well, the flood of cheap money, as well as rapidly rising government debt and concerns about a new trade conflict between the US and China. These conditions favored the massive inflows of over 120 tons into gold ETFs since the beginning of the month. High investor demand and strong ETF inflows more than compensated for the currently very weak demand for gold from China and India. The alternative currency gold continues to be favored by the further drop in global interest rates, the sharp increase in public debt, investor uncertainty, the investment crisis and a fall in the value of the most important currencies supported by the central banks. The highest value contributions in May came from positions in the mining companies Evolution Mining and Northern Star Resources (both from Australia), Agnico Eagle Mines and Yamana Gold (both from Canada) and the precious metals trading company Wheaton Precious Metals (Canada). On the other hand, the position in the mining companies Kirkland Lake Gold and Kinross Gold (Canada), Sibanye-Stillwater (South Africa) and Newmont Mining (USA) had a negative impact. The weighting of gold mining shares was around 75% at the end of May, compared with 74% previous month. The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices and also have some growth prospects. Broader commodity/chemical stocks outperformed gold mining stocks in May: MSCI World Materials +4.90% and CRB Commodity Index +11.20% - both figures on a euro basis. The fund is currently not invested in bonds. At the end of the month assets denominated in Australian and US Dollars as well as Pound Sterling were partially hedged.