How much of gold’s recent strength is due to geopolitical worries about Syria and North Korea? Surprisingly little, as it turns out.
You therefore may want to think again if you are betting on gold GCM7, +0.28% as a hedge against an escalation of geopolitical tensions. I know this advice runs counter to the conventional wisdom that gold is a safe haven, much in the same way that U.S. Treasurys reliably rally whenever there is trouble anywhere in the world. But history does not support that same conventional wisdom about gold.