All That Glitters Is Cognitive Dissonance
The gold rally has legs. But its relationship with equities is gaining a lot of attention.
Gold's Achilles’ heel: Unlike equities or bonds, it generates no cash flow.
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Gold is up more than 37% for the year, and on course for its strongest annual showing in more than three decades. It’s on a plausible trajectory toward $4,000 an ounce. All of this seems strange as the Nasdaq Composite Index also hit yet another record. But gold is underpinned by a confluence of factors: lingering inflation, monetary policy inertia, and the destabilizing effects of President Donald Trump’s trade nationalism.