Gold edged higher in Monday trading, rising to a three-month high of $1,264.90 per ounce, and some strategists see the yellow metal moving up in the near term as investors flock to the safe-haven asset in the face of global political uncertainty.
Gold is on pace to log its second straight month in the green; it hasn’t logged such a streak since summer of 2016, in the midst of Britain’s vote to leave the European Union and the U.S. presidential campaigns. Interestingly enough, stocks and gold are rising simultaneously. Gold is up nearly 10 percent year to date as the S&P 500 is up nearly 6 percent in the same time. This time last year, gold was up 15 percent on the year while the market was in the red nearly 5 percent. The commodity tends to move opposite the market as investors see gold as a safe investment in times of a market downturn.
“We really see this as heightened geopolitical risk,” Erin Gibbs, equity chief investment officer at S&P Global, said Friday on CNBC’s “Trading Nation,” referring to the recent gold rally.