Gold Isn't the Safe Haven Investors Thought It Would Be
- Biggest weekly price drop in month defies bet on gains
- Bullion volatility jumps in tandem with equity turbulence
Inside a Couple of Bad Years for Gold Bulls
This article is for subscribers only.
Gold bulls piled into the metal in hopes that the turmoil sweeping financial markets would finally help revive prices. They were wrong.
Instead of a rally, futures in New York fell for four straight sessions even as global equities plunged to a two-year low. Rather than providing a refuge from the meltdown, gold’s volatility rose right along with a measure of equity turbulence, diminishing its appeal as a haven. As stocks started to recover, the metal kept falling because of reports that signaled gains for the U.S. economy.