Trump's Fickleness Is Dulling Gold's Appeal, Deutsche Fund Says
- Lower transaction cost makes yen better haven in tense times
- Trump has shown he ‘changes his mind very quickly’: Kung
Photographer: Akos Stiller/Bloomberg
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Gold is failing in its traditional role as a haven in turbulent times, and a Deutsche fund manager has an explanation.
On Tuesday, as the deepening trade spat between the U.S. and China sent the S&P 500 index tumbling the most in a week, investors sought haven in the dollar, U.S. Treasuries and yen, overlooking gold. For Darwei Kung, a portfolio manager of the $3.3 billion Deutsche Enhanced Commodity Strategy Fund, the relatively higher transaction costs for bullion may be a contributing factor.