Gold's Correlation With Commodities And Stocks

Includes: GLD, IAU
by: David Hunkar

Gold is considered as a “safe haven” asset. This implies that the yellow metal’s performance should be inversely related to risky assets such as stocks and commodities. However, the expected divergence is decreasing in recent years and gold’s correlation with stocks and commodities is reaching historic highs, according to a research report by Germany-based Commerzbank (OTCPK:CRZBY). This is another reason for investors to hold diversified portfolio and not overweight one class of asset over another.

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Source: CityWire Money, UK

Related ETFs:

iShares COMEX Gold Trust (NYSEARCA:IAU)

Disclosure: No positions