Gold prices are up 53% over the last 3 years, almost double the S&P 500 return

The so-called barbarous relic performance has been outstanding over the last couple of years

September 26, 2024

Gold prices hit another all-time record on Thursday and traded near a historic $2,700 per ounce. Over the last 3 years, the yellow metal rallied 53% almost doubling the 28% gain of the S&P 500.

Year-to-date it is the best-performing major asset class rising by 30%. It is also on track for the best annual return SINCE 1979! By comparison, the S&P 500 is up 20% so far in 2024.

The gold rally has been truly exceptional and it would not be a surprise if some breather took place. Gold is trading now ~15% above its 200-day moving average which over the last 40 years has happened only 8 times.

Whenever it reached such extreme levels average returns within the next 6 months were flat. In other words, gold might be extremely overbought.

The long-term view, however, is not changing. If you would like to learn what has been driving long-term gold prices and whether we can expect gold to hit $3,000 please read the below article.

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