Gold Off to Best Start Since 1974

Usually gold rallies during times of inflation or the expectation of it. However, in the early going of 2016, gold is acting as a safe haven against the tumult that has burdened the market.

“Gold does well when central bankers appear to be losing control, and in the present environment that means signs that deflation is getting a grip,” said Matthew Turner, a precious metals analyst at Macquarie Group Ltd. in London. “Any signs of inflation will be broadly welcomed as a sign economies are on the right track.”

The median return for gold stocks, year to date, is +42%.