Saturday, September 30, 2017

Despite gold's recent price pullback, its gains in 2017 equal that of the S&P 500 through three quarters

Following the Fed's extremely confusing FOMC speeches where Janet Yellen admitted they have no real idea what inflation is, or where the economy is going, gold was slammed down 2.8% from around $1315 to close yesterday at $1278.  But despite this recent pullback in price over the past several days, gold is still up over 12% for the year through the first three quarters and has moved equal to the amount of gains achieved on the S&P 500.

In the year-to-date the gold price performance has matched the S&P 500, climbing over 12%. 
Gold's matching of the S&P 500 is particularly impressive when you consider the record-breaking performance of the benchmark stock market index in the last year. Yesterday it advanced 0.1% to 2510.06, a new all time record high price. 
It is also impressive considering sentiment towards stocks is shall we say "irrationally exuberant", while sentiment towards gold remains muted despite gold eking out gains in 2016 and now again in 2017. 
The precious metal has performed well predominantly due to rising uncertainties regarding North Korea, Trump and the political mess in the U.S. and other geopolitical tensions. 
Its strong performance is despite noise from the US Federal Reserve regarding its alleged plans to tighten money supply and increase rates. Other major central banks have also provided similar indications. – Gold Core via Silver Doctors


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