The aforementioned lack of progress on legislation in Washington, coupled with weaker inflation data, has been weighing on the dollar for most of the year, pushing it to new multi-year lows against the euro. This uncertainty is a breeding ground for investors' imaginations, and it's the perfect excuse for some investors to seek the safety that gold is perceived to provide. Even with the Fed having raised its federal funds target rate by an aggregate of 1% since December 2015, yields on interest-bearing assets haven't moved much higher.