Market selloff bolsters case for gold

On February 5th, stock markets suffered one of their more precipitous falls in recent years. The gold price rose but, as stocks partly retraced their losses, gold trended lower. Gold has often acted as a portfolio hedge in market downturns and the recent pullback was no exception. But gold's effectiveness improves when market corrections are wider or sustained for longer. In our view, the recent selloff is a good reminder that gold can deliver returns and reduce risk in portfolios.

Market selloff bolsters case for gold