By Eddie Van Der Walt
Gold’s outperformed most major assets since the U.S Federal Reserve last month raised interest rates -- even bitcoin.
“Since the December hike, gold is beating stocks, the dollar and bitcoin,” Bloomberg Intelligence analyst Mike McGlone wrote in a note. “Unless greenback weakness reverses, gold should shine.”
The metal’s sparkling performance in the face of tighter rates, though counter-intuitive, has become the norm. Gold prices have been turning higher soon after the Fed raises rates ever since the global financial crisis.
Since Dec. 12, the day before the Fed moved, gold climbed 5.7 percent to $1,314.36 an ounce, last week touching the highest level in three months. The S&P 500 Index gained 3.1 percent in the same period and bitcoin was down 14 percent. Gold’s advance was driven by the dollar, which fell 1.5 percent.
Original source: Bloomberg.com
Reproduction, in whole or in part, is authorized as long as it includes a link back to the original source.
Goldbroker ™ Editing Team
Our editing team, cumulating many years of experience, wishes to bring to the investors as much information as possible to help them in taking decisions independently and objectively when investing in the precious metals sector. We also regularly publish interviews with fund managers and independent specialists and analysts to let our readers and our investing clients further their analyses of the precious metals markets. We also provide translations of several articles for that purpose.