Broker Check

Is Gold Losing Its Shine?

| September 20, 2021

A safe haven during the 2020 pandemic, gold rose 20.9%[i] and outperformed the S&P 500 index which gained 18.7%. However, the commodity has slowed down in 2021 and is down -4.7% for the year[ii] despite widespread inflation concerns. Gold is often viewed as a way to hedge inflation risk, and the recent price drop has left many investors confused. In addition to inflation, gold is influenced by many other factors. A closer look may shed some light. 

For further information please see the attachment below. 

[i] Gold is represented by the Bloomberg Gold Sub Index.  Return Source: FactSet.

[ii] Source: FactSet. Year to date returns through August 27th, 2021.