The price of gold reached a historic high in April and remains close to that value. Conventional investing wisdom puts gold as a “safe-haven” asset – one that investors move towards in times of crises as they desert higher-risk assets such as stocks. But in August, the S&P 500 stock index also hit a record high and, like gold, it too remains close to this value.
Historically, those who follow these markets would have expected gold and stock prices to move in opposite directions. This typically produced the “hedging” effect of gold – it would offset losses (and gains) from stocks.
