Gold Price And Stock Market Relationship

Typically stocks have a high negative correlation with the us dollar.

Gold price and stock market relationship. Which means when gold price goes up prices in stock market will fall. The us dollar tends to rally when equities are weak thus putting downward. Gold prices may also rise in.

The stock markets and gold usually share an inverse relationship. Nymex and commodity exchange inc. In general gold and stock correlation is inversely proportional.

Data is delayed 30 minutes latest trading prices provided by nymex new york mercantile exchange inc. This chart compares the historical percentage return for the dow jones industrial average against the return for gold prices over the last 100 years. Dow jones and gold.

Gold prices 100 year historical chart. Gold price vs stock market 100 year chart. When stock markets are in a bull run you tend to move away from the yellow metal and invest in equities.

However it does not take into account the market capitalization of each stock and it includes only 30 companies which is why some analysts consider the s p 500 a better representation of the overall market performance. Theoretically there is an inverse relationship between the stock market and gold prices there have been circumstances where the stock markets rise and gold prices fall. Historically it has been observed that when stock market is most pessimistic gold performs very well.

Yet in times of volatile and uncertain stock markets you tend to rush to the safety of gold. However gold has an opposite relationship. This gold and stock market correlation is valid for all world economies.