After a disappointing few years for precious metals investors, gold is finally taking the lead.
With a 12.2 percent year-to-date rally for gold futures and a 9.3 percent year-to-date rise for the S&P 500, 2017 is set to be the first year in which the yellow metal has beaten stocks since 2011. In that year, gold advanced 10.2 percent while the S&P 500 finished flat.
This time around, traders are pinning gold’s advance on falling interest rates and a falling U.S. dollar. Both are typically good for gold, a non-yielding asset that is priced in dollars.
…”If you consider that we’re going to see some debt-ceiling drama, that actually is going to depress yields even more,” Sanchez said Thursday on CNBC’s “Power Lunch.” “And the weakness in the dollar is expected to continue into the next year. Both of those will support gold.”