Gold and iron ore are the standout commodities so far this year, but the performance of their respective miners are far more divergent – and weighted in favour of the precious metal.
Spot gold closed at $1,729.67 an ounce on June 12, up 14% since the end of last year. Meanwhile benchmark 62% iron ore for delivery to China MT-IO-QIN62=ARG, as assessed by commodity price reporting agency Argus, was at $104.45 a tonne, a gain of 14.6%.
If the year-to-date performances are very similar, the underlying drivers of iron ore and gold are quite different.
The steel-making ingredient is benefiting from China’s economic stimulus push as it recovers from the novel coronavirus, coupled with number two exporter Brazil’s struggles with the same disease.
