3 Reasons Why Gold Fell to a 52-Week Low but Could Be Worth Buying Now
Gold has underperformed the U.S. stock market over the long term. However, the yellow stuff has a reputation for being a safe-haven asset amid times of uncertainty. And many have even referred to gold as an inflation hedge.
For part of 2020 to 2022, the inflation hedge story rang true as gold passed $2,000 per ounce for the first time in history in 2020 and then reached an all-time high of $2,074.60 per ounce in March 2022. But in the last four months, gold suffered an 18% drawdown from that high -- meaning that gold is nearly in a bear market during a time when it should be holding its value. In this vein, gold seems to be failing as an inflation hedge. And in fact, there is data to suggest that gold's reputation as an inflation hedge has been largely exaggerated even by historical measures.
Here's what's pressuring gold now -- and why it may be a good buying opportunity despite not being an effective inflation hedge.
Source Fool.com
