The last few weeks have witnessed global markets on their wildest rollercoaster ride since the pandemic, with turbulence shaking financial landscapes. Amid mounting U.S. recession fears and a massive unwind of short positions, the Cboe Volatility Index ($VIX), also known as the market’s “fear gauge,” spiked to levels last seen during the COVID-19 pandemic, underscoring the intense turmoil gripping investors.
Gold is gaining from its reputation as a safe haven, providing stability and potential gains when market volatility peaks. In fact, the precious metal has thrived this year, most recently lifted by increasing expectations of rate cuts. Today, the popular currency hedge is once again revisiting recent highs above $2,500 an ounce.
