Performance of Gold, US Treasuries and S&P 500 During VIX Spikes
Gold tends to perform well in periods of significant market pullbacks.
Pullbacks are likely to continue in the face of the seemingly endless stream of variants as well as simmering geopolitical tensions and overall buoyant equity valuations fuelled by a long-lasting ultra-low-rate environment. In this context, gold can be a valuable risk management tool in an investor’s arsenal. Gold has a proven historical record of mitigating the negative impact of equity market pullbacks in periods of systemic risk.
