Surprise! Gold Prices Have Beaten the Market So Far this Century

Spot gold finished July up more than 2 percent, its best month since February, when it returned 3.7 percent. The yellow metal responded to a struggling U.S. dollar, which has lost more than 10 percent so far this year relative to other currencies and is currently at a 15-month low. The dollar could very well continue to slide on additional political uncertainty surrounding President Donald Trump and his administration. This would mean further upside for gold and gold stocks. click to enlarge Also contributing to gold’s price appreciation was lackluster economic data that, I believe, lowers the likelihood of another interest rate hike in 2017. The yellow metal is now trading above its 50-day and 200-day moving averages, ordinarily seen as a bullish sign. click to enlarge More impressively, the price of gold has outperformed the S&P 500 Index so far this century, returning 86 percent more than the market if we index both asset classes at 100 on...

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