The movement of gold and stock prices, something particular is happening

josevas217 (79)modin Project HOPE • 11 months ago

Greetings friends of Project Hope, I hope your week is going well.

Today I have to share some interesting data about things that are happening in the financial markets and that particularly catch my attention, things to which I do not have a concrete answer but I do have some possible answers.

It has always been known that gold is a store of value, and that when there are times of global economic crises it tends to increase in price consistently. And this happens when stock prices go down.

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That is to say, they generally work in the opposite way, if stocks rise, gold falls in price, this is the natural response to the fact that investors migrate their money to what they consider most profitable, so if the economic situation is complicated , shareholders will begin to withdraw their money from shares and protect them in Gold, and as the situation improves, the opposite occurs.

But in recent weeks what has happened has been very particular, since if we analyze the American indices such as the Dow Jones, the Nasdaq 100, even the SP500, they have been increasing, but the same has happened with gold. It has constantly risen in price.

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This is something that I cannot fully understand, the global economic situation is complex, inflation has not yet been controlled, and the problems in the Arab countries seem to be intensifying, which could affect oil prices in the future. rise, and cause inflation to rebound upwards.

I assume this could be the reason why gold continues to rise, because big investors know how delicate the situation is and what could happen.

And in the case of the previous rise in stocks, we know that these two months of the year sales increase, and industries increase sales, but I think next year will be very different, do you have anything to add?.