10 years of stability shows gold is best hedge against risks in equities

A weaker dollar, stretched valuations in stocks and declining crypto currencies could induce volatility in gold, going forward

Volatility in gold prices last year has been the lowest since 2005, indicating that it is now re-emerging as an asset class alternative to hedge against risks in other investment avenues such as equities. Volatility in gold prices touched 7.4 early this month and is now at 7.6, the lowest since May 2005.

Sudheesh Nambiath, Senior precious metal analyst, SE Asia, GFMS Thomson Reuters, says “Volatility is low across various assets, and the reversal in its trend is historically associated with uncertainty. Markets may not have yet factored in potential risks. And any risk event would result in increased volatility,