Inverse relationship between gold, stocks has never been this extreme - MarketWatch

MarketWatch - August 23, 2016

The correlation between gold futures and U.S. stocks has never been more negative.

But despite the inverse relationship, gold and equities may soon be poised to rise together as both can benefit from low yields, analysts said.

Gold traders are waiting to hear if the Fed will hint at higher rates in September, but “it’s also important to note that gold certainly qualifies as a flee-to-safety investment for those worried about the state of the economy and the markets,” as the yellow metal’s correlation to the stock market falling “through the trap door” indicates, Koos said.

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