Monthly report (NO17 Gold) – August 2025

Monthly fund update

Key points

• NO17 Gold ended August up 23.7% (in Australian dollars, unhedged), outperforming its benchmark (the universe of established gold miners) and gold bullion.

• If you are not already invested in gold bullion or gold miners, you haven’t missed the opportunity. The fundamentals of gold bullion are compelling, and the gold mining sector is still trading at a material discount to fair value. Some commentators have compared the present time to the mid-2000s. We would remind readers that from the end of 2005, the gold bullion price went on to strengthen by 267% over nearly six years before it reached a peak in 2011.

• Gold bullion broke from its recent sideways consolidation, finishing the month at US$3,448 per ounce (+4.8%). Supported by strong fundamentals (elevated demand and tight supply), this breakout above recent overhead resistance levels has the potential to be a decisive shift and a catalyst for further upside.
• The general perception among investors (especially those who are not allocated to the sector) is that there isn’t much more upside for gold. This couldn’t be further from our expectation. We have a very positive outlook for the gold price and we believe ‘Liberation Day’ has lit the fuse on a much bigger upward move as capital is allocated away from US assets (especially US Treasuries).

• The potential for the global trade war to cause an inflation shock (at a time when inflation is already elevated and proving sticky), should be motivating investors to identify investments which would stand to benefit from such a scenario. We recall that the second inflation shock in the 1970s resulted in the gold price spiking by 179% over 12 months.

Please note that the detailed performance and positioning disclosures included on the second page of our report is now only available to unit holders in the fund.