However, the sell gold now thesis ignores the facts that the yellow metal is well off its highs set several years and that gold entered 2016 locked in a three-year long bear market. Less than three months of rallying this year does not erase those facts.
“Precious metals — and gold, in particular — typically have lower correlations to the stock and bond markets than many other commodities, such as oil. Part of the reason is that supply-and-demand characteristics for gold are different,” adds CNBC.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.