In a desert, oases can get a bit crowded. On Monday, the price of gold futures rose to a record. The precious metal is now up 27% in 2020, compared with a total return of less than 1% for the S&P 500. Gold produces no income but is a hedge against consumer-price rises, so a key driver of the rally has been the drop in the yields of inflation-protected Treasurys due to monetary stimulus and a recent rebound in inflation expectations. Also, the weakening of the dollar as Covid-19 cases rebound in the U.S. mechanically pushes...

Source: Wall Street Journal July 27, 2020 13:07 UTC