3 reasons why gold may outperform the stock market

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There's a strong argument that gold will outperform the stock market in the year ahead.

Gold is a common topic in financial media and for good reason. The asset is a classic safe haven that's prized for its lack of volatility when the market faces choppy waters. In some cases, gold outperforms the overall market. With gold investing recently hitting an 11-year high many are wondering if gold will outperform the stock market in the weeks and months ahead.There's a strong argument that now is the time to invest in this safe haven commodity.

Some argue that increased interest rates will send gold in the negative direction, citing an inverse relationship between gold and interest rates. But that general concept isn't always right. In fact, the relationship between gold and interest rates throughout 2023 says this notion is incorrect. The Fed increased rates four times so far this year, yet gold prices are up more than 6% year-to-date. There are several factors that play a role in the price of gold.

 

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