Gold Named as One of the Most Stable Assets

SEATTLE (Scrap Monster): The investment update report published by the World Gold Council (WGC) says that gold will continue to remain as one of the most stable assets. It notes that volatility of several assets has shifted in relation to the performance of gold. The report analyzes present day gold market conditions from a volatility and derivatives perspective.

According to the Council, gold has been one of the most stable assets from a volatility perspective, not only during the pandemic, but also during the subsequent rebound. The volatility of gold has remained more or less stable, whereas those of other asset classes diverged during risk-on and risk-off periods. For instance, cryptocurrencies continue to remain incredibly volatile, despite acceptance by some leading institutions. Also, gold has been more consistent than stocks and other alternative assets.

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Additionally, gold’s role as a portfolio diversifier has much more prominence today, says WGC report.

Gold prices surged higher to reach $1,900 per Oz levels in 2020. From a technical perspective, the price breakout in gold should take it to $1,960 per Oz in 2021. Incidentally, the prices had touched these levels twice in Q4 last year.