Gold generally moves in the opposite direction of the
Gold is a hedge against inflation
Gold is a hedge against raising commodities
Gold is seen as a gauge of oil led inflation
Lower dollar makes dollar denominated assets like gold cheaper for investors holding other currencies
Higher bond
yields can diminish demand for utilities, whose steady dividends serve as a
substitute when Treasuries aren't offering attractive returns
Bartholomew Roberts(Black Bart): “In an honest service, there is thin victuals, low wages and hard labour. In this, plenty and satiety, pleasure and ease, liberty and power...No, a merry life and a short one shall be my motto."
May associated with the old Wall Street adage, "Sell in May
and go away."
“Stocks
climb a wall of worry”- IBD- mentions this Wall Street saying in response to
the raising NYSE short interest ratio and at a record high during the current
rally.
Most
large investors, like pension funds or big wealth managers, allocate between
2.5 to 5 percent of their portfolio to commodities, which often generate
positive returns when stocks and bonds decline and protect against inflation
The
dollar's drop sparked a rally in gold and oil since they are priced in dollars,
making them more affordable for overseas buyers. Rueters
While
a weaker dollar is good for multinationals, which can sell more goods in
overseas markets, a diminished dollar will make imports more expensive,
possibly fanning inflation.