Chedid observes that "Gold is continuing to be an effective hedge in times of geopolitical volatility," specifically noting it helps when stock/bond correlations break down. In a scenario where inflation spikes (due to oil) and growth slows (due to war), the traditional 60/40 portfolio fails (stocks and bonds both drop). Gold acts as the non-correlated store of value during the "fog of war" phase where the endgame is unclear. LONG Gold as a portfolio buffer. A strong US Dollar (DXY) can sometimes act as a headwind to Gold, though currently, both are rising together (safe haven bid).
Chedid observes that "Gold is continuing to be an effective hedge in times of geopolitical volatility," specifically noting it helps when stock/bond correlations break down. In a scenario where inflation spikes (due to oil) and growth slows (due to war), the traditional 60/40 portfolio fails (stocks and bonds both drop). Gold acts as the non-correlated store of value during the "fog of war" phase where the endgame is unclear. LONG Gold as a portfolio buffer. A strong US Dollar (DXY) can sometimes act as a headwind to Gold, though currently, both are rising together (safe haven bid).