MELBOURNE (Reuters) -Australia said on Tuesday it expected gold to become its second most valuable resource export after iron ore this financial year, dislodging liquefied natural gas, as concerns over geopolitical instability fuel demand for the safe-haven metal. Australia's gold exports are expected to rise by A$12 billion ($7.9 billion) to A$60 billion in the current financial year ending in June 2026, as the country exports more gold at higher prices, the department of industry said in its September q ...

Economic Landscape and Gold Prices - The current economic environment is characterized by rising uncertainty and fragile investor confidence, with comments from Fed Chair Jerome Powell, geopolitical tensions, and increasing inflation expectations contributing to a rally in gold prices [1][3] - Strong fundamental indicators suggest that gold's gains could extend into late 2025 and 2026, making a case for increased portfolio allocation towards gold [1] Interest Rate Expectations - Powell's recent speech indicated a potential interest rate cut, which is expected to boost gold prices as the U.S. dollar typically weakens with rate cuts, making gold more attractive [3][4] - The CME FedWatch tool shows an 87.3% likelihood of a rate cut in September, up from 75% prior to Powell's speech, with even higher probabilities for subsequent months [4] Dollar Value and Gold Demand - A weaker U.S. dollar, which has fallen approximately 7.79% over the past six months, is expected to further lift gold prices as it increases demand for gold among foreign buyers [5][6] Inflation Expectations - Rising inflation expectations, with a 12-month forecast increasing to 4.9% in August from 4.5%, and long-term expectations rising to 3.9% from 3.4%, make gold an attractive hedge against inflation [8][7] Central Bank Activity - Central banks are increasingly strengthening their gold reserves, which may drive up gold prices amid ongoing geopolitical and economic instability [9] Investment Strategies - Investors are encouraged to adopt a long-term passive investment strategy in gold, viewing it as a hedge against market volatility, and to consider a "buy-the-dip" approach [11] - Recommended ETFs for gold exposure include SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and others, with GLD being the most liquid option [12][13] Performance of Gold ETFs - GLD has an asset base of $102.67 billion, the largest among gold ETFs, and has gained about 35.6% over the past year, while GLDM and IAU are the cheapest options for long-term investing [13]

Industry Overview - The U.S. utilities sector has seen a significant rise in 2025, driven by macroeconomic, regulatory, and market-specific dynamics that have renewed investor interest [2] - The S&P 500 Utilities Select Sector SPDR (XLU) has advanced by 9% as of May 2025, indicating strong performance in the sector [2] - Falling treasury yields have enhanced the attractiveness of dividend-paying stocks, including utilities, as government bond yields become less competitive [3] Market Dynamics - The appeal of defensive stocks has increased due to ongoing concerns about inflation, potential Federal Reserve rate adjustments, and geopolitical instability [2] - The imposition of 25% tariffs on steel and aluminum imports has raised costs for essential materials in utility infrastructure, impacting supply chains and project expenses [4] - Despite tariff-related market uncertainties, investors continue to seek refuge in utility stocks, which are perceived as defensive havens [4] Company Highlights - Southwest Gas Holdings, Inc. (SWX) is a natural gas distributor with an expected earnings growth rate of 17.7% for the current year, and its earnings estimate has improved by 4.8% over the past 60 days [7] - New Jersey Resources Corporation (NJR) is also a natural gas distributor, with an expected earnings growth rate of 9.9% and a 2.9% improvement in earnings estimates over the past 60 days [8] - Telenor ASA (TELNY), a global telecommunications company, has an expected earnings growth rate of 17.1% and a 3.8% improvement in earnings estimates over the past 60 days [9] Investment Considerations - Utility stocks are generally viewed as long-term buy-and-hold options due to their regular dividend declarations and higher dividend yields compared to other equities [5] - The stocks of SWX, NJR, and TELNY benefit from investor rotation into stable, dividend-paying utility stocks, with strong growth and value indicators reflected in their VGM Scores and Zacks Ranks [10]