Gold prices have surged $100 an ounce over the past seven weeks, closing Friday just under $1,300 an ounce, settling at their highest price in almost three months.
A decline in the U.S. dollar following a speech by Federal Reserve Board Chair Janet Yellen in Jackson Hole, Wyoming, that failed to mention monetary policy, provided the latest boost to gold prices.
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Year to date, the yellow metal has gained over 12%, well above the 9.3% increase in the S&P 500.
“Gold shines as Washington stumbles,” writes Russ Koesterich, co-portfolio manager of BlackRock’s Global Allocation Fund (MDLOX) in a recent market commentary.
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“Policy uncertainty, as measured by the U.S. Economic Policy Uncertainty Index, has had a more statistically significant relationship with gold prices than financial market volatility.”