KIM: Gold is still valuable as a tool for crashing stock markets

In a report, Thomas Mathews, a macro strategist, stated that gold was still valuable as a tool for crashing stock markets. The recent performance of gold is more like a “risk” asset than a “safe” asset, as its recent price volatility is comparable to the benchmark index of 500. At a time of conflict in the Middle East, the poor performance of gold appears to have weakened its inflationary skirmishes. However, the link between gold and the real bond rate of return remains sound and any decrease in the real rate of return is expected to boost gold. If the US economy is hit and the Fed is pushed down the policy rate sharply, the positive correlation between gold and the stock market in the near future will not continue。