黄金避险作用值得怀疑🤨 Far from trading inversely to stocks, gold’s correlation to the S&P 500 went from strongly negative at the start of the year, to softly positive now.
That makes sense. Bullion has a long-established (and sometimes overstated) link with real rates. As a perceived inflation hedge which pays no yield, it does well when policy rates are low and inflation is fast. At the same time, equities are being propped up by loose monetary policy and low discount rates on future corporate earnings.
After setting a new record high at $2,075.47/oz in August, gold’s momentum started to fade. Will it now rise with stocks if Europe and the U.S. provide more fiscal stimulus? And does that make it a risk-on play, rather than a haven, negating the role it plays for many in a diversified portfolio?
That makes sense. Bullion has a long-established (and sometimes overstated) link with real rates. As a perceived inflation hedge which pays no yield, it does well when policy rates are low and inflation is fast. At the same time, equities are being propped up by loose monetary policy and low discount rates on future corporate earnings.
After setting a new record high at $2,075.47/oz in August, gold’s momentum started to fade. Will it now rise with stocks if Europe and the U.S. provide more fiscal stimulus? And does that make it a risk-on play, rather than a haven, negating the role it plays for many in a diversified portfolio?