As highlighted by Tavi Costa, despite the recent push toward new highs, gold remains severely under-allocated
In fact, 71% of US advisors have little to no exposure to the metal. Similar to how Central banks continue to aggressively accumulate the metal, conventional investment portfolios have yet to take steps to find true diversifiers. Sources: Tavi Costa, BobEUnlimited
Here's the downside risk on gold. Either this longstanding correlation is broken or inflation is grossly understated and real rates remain negative
Source: Henry Smith
Gold's normal negative correlation to the dollar (upper chart) and US bond yields continue to collapse
Highlighting the current support for XAU as an alternative investment amid rising financial risks as yields surge and investors worry about developments in the Middle East (Chart: Bloomberg)
Here's a chart of gold in yen
Japan has been ahead of the curve when it comes to FIAT currency debasement and the way its currency is trading against gold is rather frightening with another huge ~10% new ATH move this month. Will other FIAT currencies follow the yen path? Source: Graddhy - Commodities TA+Cycles
Amazing chart by CrossBorderCapital
Treasuries out, gold in?
The correlation was weaker in the 1980s/1990s, but starting after 2000, gold has historically done quite well whenever the Fed pauses or cuts
Source: Lyn Alden
Oil vol, OVX, and gold vol, GVZ, have exploded higher and continue to stay at elevated levels/move to new recent highs
These are the two assets to watch for the "real" war stress. Source: TME, Refinitiv
Gold (in yellow) vs. VIX (in green). Is gold the new 'fear index'?
It has systemically decoupled from real rates for sure. Source: Bloomberg
