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Gold Confirms (Again) Its ‘Safe-Haven’ Status

COMMODITIES
  • While equities have experienced tremendous volatility in recent weeks, gold confirmed once again its ‘safe-haven’ status.
  • The precious metal is up 10% since the start of the month and is currently trading at its highest level since January 2021.
  • XAUUSD is currently testing the 1,950 level; next ST resistance to watch on the topside stands at 1,965 (Nov 2020 highs).
  • The chart below shows that periods of surging price volatility (VIX) have been associated with a spike in the Gold/SP500 ratio.
  • As opposed to other 'alternative investment' (i.e. digital assets), gold has not disappointed in periods of market uncertainty in the past cycle.

Source: Bloomberg/MNI

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