By Andrew Packer
Last week, a rallying stock market and declining gold prices led to an interesting intersection: both assets reached the same percentage gains for 2016, at around a 9 percent positive return.
That means stocks are on track for a slightly better than average year. And gold, after 5 years declining, is looking to at least post a gain. But that gain is much smaller than expected. At the end of the first half of 2016, the yellow metal was up closer to 30 percent.
So, is the gold trade dead? In the short-run, perhaps. But the long-run rationale for owning gold got a huge shot in the arm.