Gold Prices Rally After Stock Market Underperforms
The most actively traded gold futures contract rose 0.6% to $1,975.20 a troy ounce after the stock market’s timid performance as well as recent Federal Reserve interest rate hikes
Analysts say gold prices were boosted by some investors betting that the July increase could potentially be the last one by the Fed.
Tweet on the Gold surge
Gold Prices Rally After Stock Market Underperforms!#gold #stock #markets pic.twitter.com/tNfVdy1uqY
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Factset chart: Gold
The percentage of Americans who believe gold is the best long-term investment jumped to 26% this year from 15% in 2022, according to a Gallup report from May.
In contrast, those preferring stocks dropped to 18% from 24% last year, while those favoring bonds climbed to 7% from 4%.
The U.S. Mint has sold 5.56 million troy ounces of gold coins since the pandemic struck the U.S. in March 2020, compared with 3.26 million in the four-year period before that
The yield on the 10-year Treasury declined to 3.860% from Tuesday’s 3.911%, making it more appealing to hold gold, which doesn’t pay any regular income.
Gold prices are up 8.4% this year, powered by a banking crisis and hope that the Fed is near the end of its rate-increase cycle.
