Is Gold’s Surge a Safe Haven Trade, or Speculation?

michael lebowitzHaving risen roughly 40% since last October, gold prices are on a moonshot:


For many investors, gold prices are considered a broad macro barometer, measuring economic anxiety, inflation, currency, and geopolitics. So what’s the driving force behind the precious metal’s recent surge?

Behind the Divorce Between Gold and Real Yields

Before we can figure out what may be driving gold’s momentum now, we must first understand that the trusty relationship that largely explained the metal’s price movements broke down about two years ago.

The graph below, courtesy of Matt Weller, Global Head of Market Research with and City Index, shows that the 15-year-old correlation between gold prices and