Gregson calls bottom for gold small caps

JPM's Neil Gregson has called the bottom of the market for gold mining stocks, especially small caps, tipping them to pick up against bullion as investors look to add risk to their portfolios.

Gregson, co-manager of the £2.6bn JPM Natural Resources fund and manager of the newly launched Global Mining fund, said although gold equities have significantly lagged the gold price, there are signs of this trend reversing. Gold bullion fell sharply last Thursday after a hitting a series of record highs in recent weeks as investors U-turned on risk assets ahead of a possible round of further stimulus in the US. The sharp correction – its steepest fall in at least a decade in dollar terms – left gold about 12% or $209 lower at $1,702, the precious metal having hit a new peak of $1,9...