Shares/Stock Does the Gold price affect the stock market?

raaman

Valued Contributor
Gold price fluctuations are one of the factors that stock investors are interested in to monitor and predict market changes. So, how does the gold price affect the stock market? To understand this, you must first learn about the relationship between the stock market and gold prices. Gold prices typically climb when the stock market falls.
But, this is not a direct impact. It means the stock market does not directly cause gold prices to increase but rather due to the shifting market demand. Investors often look to the safe haven channel of gold to preserve capital when the stock market declines. Past data on the relationship between gold prices and stock indexes is evidence that gold prices affect the market.
 

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