Gold Is Nearing a 1-Year High, but Gold Stocks Are Lagging -- Here's Why
It's very quietly been a very strong year for physical gold. Following a late 2016 swoon, the lustrous yellow metal has rallied from its $1,150.90 an ounce close on Dec. 30, 2016, to hit a 2017 high of $1,339.40 an ounce. At $1,339, gold is just $10 an ounce from hitting a one-year high.
Why has the spot price of gold rallied so strongly? Lately, uncertainty in many forms has played a key role. This past week's nuclear test in North Korea shook investors, sending them fleeing to safe-haven investments such as gold. In addition, uncertainties over Congress's ability to pass corporate tax reforms, which are being counted on to boost U.S. GDP growth, has some pundits favoring gold relative to stock-based equities.
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Source: Fool.com