gold, page-85885

Gold may be the 'store of value' from an academic view but theory does go through a cycle of evolution as economic/monetary policies evolve over time I suspect. I am looking back at the LT charts and there are plenty of examples where the correlation to equity markets flip from positive to negative.

2008 GFC, gold got pulled down by the equity meltdown.
2020 pandemic, similar condition
2018 trade war was the opposite especially December meltdown

Even Jimmy Rickards on twitter this morning suggested that gold will fall in line with equity because of the leveraged component as folks liquidate anything to meet margin calls. Same logic but whether this is the correct explanation of the side effects is immaterial if the damage is inflicted. Manipulation or correlation?

Gold is far from forming a top but from the ST (daily chart) the lower highs are not helping the narrative that it is taking a breather. Price broke through and closed below the $1920 as opposed to 12Aug spiked down fakeout. The suggestion that US overnight sell-off was driven by 2nd wave of infection in Europe has merit coupled with more than a US equity recovery. Neither gold nor US equity is about to collapse but one just never knows how the pandemic is mitigated together with a very crucial US election.