What is the relationship between the price of gold and equity price?

Question

Accepted Answer

The relationship between the price of gold and equity price is generally inverse.

Gold is often considered a safe haven investment, so when the equity market is performing poorly, investors tend to flock to gold, driving up its price.
Conversely, when the equity market is performing well, investors may shift their focus away from gold, causing its price to decrease.
There can be exceptions to this relationship depending on various factors such as economic conditions, geopolitical events, and investor sentiment.
For example, during times of economic uncertainty or inflation, both gold and equity prices may rise together as investors seek alternative investments.

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