Sector movers: Precious metals miners gain on 'debt debasement' trade

Precious metals miners paced gains on the FTSE 350 again at the start of the week, as the price of the yellow metal pushed to within a whisker of its 52-week and record highs.

Gold futures for next month delivery on COMEX hit an intra-session high of $2,125.10/oz. on Monday.

Meanwhile, Bitcoin surged 8% to reach $68,139.3, leaving it within a whisker of its own record highs of $69,000 last seen in November 2021.

And the fundamental reason behind the moves in gold and Bitcoin?

In a research note sent to clients on 1 March, Michael Hartnett at Bank of America noted how U.S. national debt was now rising by roughly $1trn every 100 days.

"Financing domestic bliss & overseas wars US budget deficit past 4 years = 9.3% of GDP…little wonder "debt debasement" trades closing in on all-time highs, i.e. gold $2077/oz, bitcoin $67734."

Speaking of wars, in the background, shares of BAE Systems and Rolls-Royce were both to be seen trading at all-time highs.

Top performing sectors so far today

Precious Metals and Mining 8,201.56 +3.16%

Aerospace and Defence 10,115.24 +0.74%

Investment Banking and Brokerage Services 14,272.11 +0.61%

Electronic & Electrical Equipment 9,862.32 +0.23%

Gas, Water & Multiutilities 5,908.41 +0.10%

Bottom performing sectors so far today

Automobiles & Parts 1,301.82 -2.69%

Personal Goods 18,011.92 -2.12%

Chemicals 9,051.70 -1.63%

Tobacco 25,748.07 -1.56%

Travel & Leisure 7,933.55 -1.48%