There must be more to it that just a causative relationship...

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26/10/18

11:42

Post #: 36271917
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Originally posted by Midnight26 ↑

...and again...
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For the month, DOW down -7.2%, NASDAQ down -11.2%, Gold up 2.6%

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Gold To Replace U.S. Treasuries As The ‘Ultimate Risk-Off Asset’ — INTL FCStone

Anna Golubova Wednesday October 24, 2018 16:17

(Kitco News) - If the Fed continues to steadily raise interest rates higher, gold will replace U.S. Treasuries as the “ultimate risk-off asset,” according to the New York-based INTL FCStone.

“If, as I expect, rates will go higher for longer, much higher for much longer, gold will replace Treasuries as the ultimate risk-off asset, and investors should own it as an insurance against equity market risk,” INTL FCStone global macro strategist Vincent Deluard said in the ‘Gold Is The New Treasuries’ report published this week.

The report measures gold’s ability to act as a hedge against stock market volatility, which varies from decade to decade.

“Gold tended to rally a lot on big down weeks for the stock market between 1985 and 1995 when the memories of the great inflation were still fresh. Gold’s value as an equity hedge declined during the “great moderation” of the late 90s. Treasuries emerged as the new risk-off asset during the deflationary years that followed the great financial crisis of 2008. However, gold has outperformed Treasuries on bad stock market weeks since the Fed started hiking rates in 2015,” noted Deluard.
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https://www.kitco.com/news/2018-10-...The-Ultimate-Risk-Off-Asset-INTL-FCStone.html

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There must be more to it that just a causative relationship between treasuries interest rates and gold , ie what about the bond market as treasuries go up bonds lose their value so makes gold a safe haven , also as mentioned it is a safe haven for when the Dow drops .
Interesting to see how BBX did rise yesterday in the face of adversity

BBX Price at posting: 19.5¢ Sentiment: Buy Disclosure: Held
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There must be more to it that just a causative relationship...

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Cyclone signs MOU with Vale for development of Iron Bear play

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