The volatility for the stock market and renewed concerns about economic growth could spur some investors to take a closer look at buying gold. Those who already own it are probably sleeping a little easier this week. With the the stock market now well off its highs, spot gold is actually outperforming stocks and the broader bond market year to date.
Now you know the interest rate environment is going to decline. The economy's weakening. So now this is when gold actually does start to work," said John Davi, CEO and CIO at Astoria Portfolio Advisors. Bitcoin is still ahead of gold in 2024, likely helped by the arrival of new ETFs, but the so-called "digital gold" has dropped about 14% in August — compared to just a 2% decline for real gold — and has tended to sell-off with other risk assets during times of stress.