Gold is also used as a safe store of wealth when inflationary pressures diminish the value of dollar.

“Inflation expectations have been picking up, and gold is moving along with higher oil prices,” Edward Dempsey, the chief investment officer at Pension Partners LLC in New York, said in a telephone interview. “Higher oil and gold prices dovetailed with higher yields are confirmation that the market sees inflation rising.”

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For more information on the gold market, visit our gold category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own shares of GLD.