The current global economic scenario features plenty of headwinds to keep investors on edge - including ongoing conflict in the Middle East, “higher for longer” interest rates, and a mixed start to Q3 earnings season. Unsurprisingly, “safe haven” assets have been in higher demand lately, with bond yields popping to multi-year highs, and December gold futures (GCZ23) spiking back above the $2,000 level to end last week.
Gold's reputation for relative safety is due to its status as a store of value, as well as a hedge against inflation. So, while the S&P 500 Index ($SPX) has dropped 3.7% in the past month - and is now 10% off its highs - the SPDR Gold Shares (GLD) has tacked on 6.9% in the same time frame.
