Stock Market tumble...why gold down too?

[Saltheart]

It seems to me that when the market tumbles down , gold should go up. No? Why has gold followed the market down?

Now I have no gold investments unless they are buried in some managed funds so it just a curiousity question.

[JohnnyD]

Originally Posted by Saltheart

It seems to me that when the market tumbles down , gold should go up. No? Why has gold followed the market down?

Now I have no gold investments unless they are buried in some managed funds so it just a curiousity question.

I don't think the price of gold (or silver) are nearly as inversely related to the market as bonds are. People tend to flock to gold due to a lack of confidence in fiat currencies. When it looked like almost a sure thing that the Euro was going to collapse and there was so much emphasis on the dire US debt situation, people were flocking to gold.

Personally, I think the price of gold was over-inflated due to hype and should be priced between $1500-1600.

[GregW]

Originally Posted by Saltheart

It seems to me that when the market tumbles down , gold should go up. No? Why has gold followed the market down?

Now I have no gold investments unless they are buried in some managed funds so it just a curiousity question.

Scared investors are irrational.
Posted from my iPhone/Mobile device

[nightfighter]

US dollar rallied, so some of those buyers were selling gold to purchase the greenback.