Last week, the international value of gold crossed $3,000 per ounce for the first time. Why in any respect this sudden frenzy for the valuable steel? And why now?
Historically, gold costs and fairness market efficiency have been inversely correlated. Meaning, each time there may be an financial upheaval, traders would pull out funds from riskier belongings comparable to shares, and place it in gold, resulting in the label ‘safe haven asset’ for the yellow steel.
But in the previous couple of years, that relationship has modified. Even as the inventory markets rose, gold costs too did. If there may be one factor that enterprise or trade is uncomfortable with, it’s coverage uncertainty. Whenever there isn’t any predictable sample in policymaking, non-public investments sometimes decelerate and even grind to a halt.
Also watch: Why is Trump frightened about America’s gold at Fort Knox?
Script and presentation: Ok. Bharat Kumar
Editing: Shibu Narayan
Published – March 20, 2025 02:16 pm IST
