There are supposed to be certain “rules” between market drivers and gold. Gold is supposed to hedge inflation. This relationship has proven mixed. A second relationship is linked to real rates. Since gold does not earn a return, investors should prefer an asset with a positive real return over gold. The longer-term relationship is negative, yet the last four years show a relationship in transition. Right now, there is a a much stronger link with real rates.
Gold can be viewed as a meme asset that reflects investors’ fears. There may be an economic relationship, but the link is often unstable.
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