The start of a full-scale Russian war against Ukraine has caused people to worry about the future, and inflation, which remains at a consistently high level, can be added here. Currently, these two factors have both a positive and a negative impact on the world price of gold, although so far neither of these factors seems to be particularly dominant.
Why Weak Consumption Could Drive Gold Prices Up: If bonds, stocks and cryptocurrencies continue to fall, many investors are likely to look to gold's proven defensive function as a "safe haven" in volatile times. In this context, the negative correlation that the yellow precious metal has with stocks, the dollar, and interest rates is considered particularly positive.
Over the years, the following trend has been observed on international stock exchanges: when the trend changes to the downside, risky forms of investment are sold or avoided by investors, while protective assets, which undoubtedly include gold, receive large profits.
That gold should be viewed as a low-risk asset class can be judged by its volatility, a commonly recognized indicator of risk in the financial world. For example, the Gold Volatility Index (GVZ) is currently 16.4%.