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The gold-stock market relationship during COVID-19
1Department of Finance and Business Law, James Madison University, Harrisonburg, Virginia, 22807, USA.
Abstract:
The belief that investors shift to gold during times of economic stress, resulting in a negative correlation between gold returns and stock returns, is not supported in both the 2007-09 financial crisis and during COVID-19. However, the gold-stock market relationship is positive in periods of negative real rates of return. The evidence points to gold as a safe haven in times of stock market volatility and negative interest rates.
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