Capital Economics: Gold still has value as a hedge against a sharp decline in the stock market

According to Jinshi reports, Capital Economics strategist Thomas Mathews stated in a report that gold still holds value as a hedge against a sharp decline in the stock market. Recently, gold's performance has resembled that of a "risk" asset, with its price volatility comparable to that of the benchmark S&P 500 index.

Although gold performed poorly during the Middle East conflict, its connection with real bond yields remains intact, and a decline in real yields is expected to boost gold.