The New Gold Exchange Traded Fund (ETF) is down 14 per cent year-to-date, on the back of the decline in Gold prices.
New Gold has traded a total of 16,058 units on the Nigerian Stock Exchange (valued at cN38m) year-to-date.
Closing the week ended April 19, 2013, at N2,185.00, the gold-backed ETF has shed N349.00 from its 2013 opening price of N2,534.00.
Vetiva Capital Management analysts say they had expected gold to ease on its bull run in recent years and post softer year-on-year gains than previously seen assuming stable economic indices from the eurozone, more stagnant and unfavourable macro-data from the US and improved gold demand from China and India.
“However, with the US unemployment rate gradually dropping, the persistent crisis in the Euro area, seeming decline in China’s growth rate and increasing appetite for the traditional portfolio asset classes – equities and bonds, we expect a more bearish year for the yellow metal than initially anticipated,” they say.
“Based on the above and barring any unexpected and drastic events, we expect the bullion to trade within psychological support and resistance of $1,350.00 and $1,550.00 till the end of
