When the general stock market declined in the previous months, many people called for much higher gold prices, supposedly based on the allure of the safe-haven demand for the yellow metal. And while there is some truth to it as gold would be likely to rally if the US economy got into severe trouble, this simply does not apply to the link between the short-term volatility of the stock market and the gold price. We proved there is no translation of the former into a certain price action of the latter. In the past, the implications of volatility spikes were rather neutral and since the 2011 top they are actually bearish for the gold price.
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