How is the relationship between Stocks and Gold changing?

Investors opt for safe haven assets during Risk Aversion, favouring stability over returns, whereas risk appetite prompts investments in higher-risk assets for potentially greater returns.

Risk Aversion vs Risk Appetite:

Higher inflation can erode corporate profits, leading to increased gold prices as it preserves value against currency depreciation. Higher interest rates raise borrowing costs, dampening consumer spending and economic growth, contrasting with gold's appeal.

Inflation and Interest:

Gold becomes a preferred store of value during recessions due to heightened demand, while stocks typically underperform amidst reduced consumer spending and corporate profits during economic downturns.

Recession or Economic Cycles:

Negative sentiment prompts investors to seek safety in gold amid geopolitical or financial turmoil, boosting its price, whereas positive sentiment drives stock demand due to economic growth prospects and favorable policies.

Market Sentiment:

Loose monetary policies weaken fiat currencies, bolstering gold prices as a hedge, whereas stocks benefit in the short term from reduced borrowing costs and enhanced economic activity under loose policy measures.

Monetary Policy:

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