Gold, equities show unusual sync in March; nosedive, recover at same times

Topics Gold  | Equities | Coronavirus

Gold and global equities don’t usually move in tandem, but these are not usual times. The two assets — one a traditional haven and the other a classic risk-on bet — had an inverse correlation for most of last year, but as investors navigate the fallout from the coronavirus, they’ve started to move more in sync. Both nosedived in mid-March amid panic selling and forced margin calls; each then recovered by about 20% as central banks and governments kicked in more stimulus. That official support has aided stocks, while also fanning concerns about currency debasement and rising debt levels, supporting bullion.

 



Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel