When markets are anticipating a recession, gold becomes an attractive commodity as investors seek a safe haven from equity markets during times of uncertainty.
The price of gold usually has a negatively correlated relationship with equities during a recession or when one is looming. Indexes and ETF which are exposed to gold within the mining sector in the industry strongly follow the gold price for obvious reasons. We will be exploring such correlations with the ‘VanEck Vectors Gold Miners ETF’ used as an underlying in a structured product, which recently matured. We analysed the time series for the S&P 500 Total Return, Gold and
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