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.
Shanghai Metals Market repeats witness on aluminium and alumina prices going opposite directions
Aluminium prices rise across the board on SMM, defying previous week’s declining trend
