(Kitco News) - For some investors, gold has been a disappointing safe-haven asset, but one market analysts said he is keeping an eye on mining stocks to signal a turnaround in the precious metal.
In a report published Tuesday, Ole Hansen, head of commodity strategy at Saxo Bank, said that gold’s price action – a nearly 14% decline from the recent seven-year high – is reminiscent of the 2008 financial crisis, in which the precious metal declined by 20%. April gold last traded at $1,484.50 an ounce, up 0.45% on the day.
“The correction has obviously once again raised the question of whether gold is worth its tag as a safe-haven and diversifier,” Hansen said. “We believe the long-term reasons for holding gold has if anything been strengthened by current developments.”