Oil funds yield 9 per cent returns while gold funds in negative territory
Thanks to the global economic recovery, oil funds yielded an average return of 9.36 per cent for the first eight months of this year, while gold funds gave a negative return of 14.15 per cent on average.
Based on a survey of commodities funds, among oil funds, Solaris Asset Management’s Oil Tracking Fund topped the list with its average return of 11.28 per cent, followed by TMB Asset Management’s TMB Oil Fund with 11.13 per cent and Krungsri Oil Fund with 11.11 per cent. The worst performer yielded 7.25 per cent.
Among gold funds, Thanachart Gold Retirement Mutual Fund-UH became the best performer with a negative return of 12.10 per cent on average, trailed by Bualuang Gold Fund’s negative return of 12.17 per cent and Bualuang Gold Retirement Fund’s 12.37 per cent. The worst-performing gold fund yielded a negative return of 16.04 per cent.
An analyst at Phillip Securities (Thailand) said yesterday that oil funds gained momentum from the global economic recovery after improved economic figures were released in the United States, Europe and China.
On a fundamental basis, oil funds remained more attractive than gold funds as gold prices could continue declining with some rebounds in short periods from unrest in the Middle East, he said, adding that that factor supported oil prices.
"The Nymex oil price is forecast at US$95 per barrel with the resistance level at $110-$115. The current price is $107," he said.
High uncertainty remains over gold prices. If the US starts scaling back its monetary stimulus programme as expected, gold prices could be pressured again, he said.
Gold declined 17 per cent this year amid speculation the US Federal Reserve will curb stimulus. A private US report was projected to show yesterday that employment increased, adding to the case for the Fed to reduce debt purchases at a policy meeting on September 17-18, according to Bloomberg.
The Senate Foreign Relations Committee recently voted to authorise US President Barack Obama to conduct a limited US military operation against Syria.
"Prices are lower not only on Syria but also on the expectation that the Fed monetary policy may change this month," Bloomberg quoted Mark To, head of research at Wing Fund Financial Group, a Hong Kong-based precious metals trader and refiner, as saying.
The gold price support level is set at $1,350 an ounce, while resistance is at $1,450 in the short term, the Phillip analyst said.
