Historical data show bullion acting as "investment insurance" – a simple tool for smoothing your risk and return, and reducing your overall losses when stocks, bonds, crypto or real estate fall sharply.
Research into asset allocations with bullion show it working time and again to hedge investment risk. bullion has positively boosted overall returns during longer periods of weak stock markets.
In uncertain economic times, investors tend to put their money in gold. So it's perhaps little surprise that gold prices started to rise at the beginning of 2020 as the coronavirus started spreading in China and Europe and investors feared a global economic downturn.
Gold usually rises alongside investors' uncertainty in the economy. It's a "safe haven" for investors who want to hedge their bets against a falling dollar and instability in financial markets, as long as investors are still unsure about the health of the market, they'll continue putting money into gold.