Stock Markets Exposed

If the stock market crash what will happened to the Gold price in market??

What r the type of effect on Currency value n the gold price when the stock market crash??? How do they link up???

Public Comments

1. Well, Gold is used as a hedge against poor preformance in equity and other markets. So if the market crashed gold would continue to go up. A market crash would be correlated with increasing Interest rates to ward of inflation and to pay off huge foriegn debt, all this would weaken the dollar and push gold higher.
2. It is somewhat difficult to say ahead of time. It somewhat depends on what causes the crash and the government reaction to it. If the crash is caused by a collapse of the economy, the price of gold might very well drop unless the government inflates the currency to counteract the collapse, one of their favorite tricks. In that case the price of gold might rise. If the collapse is caused by a steep rise in inflation, gold most likely will go up dramatically. If the collapse is caused by an attack on Iran by you know who, gold might very well go up considerably in price. If the collapse is caused by a sharp rise in interest rates, gold might very well drop in price as it will become relatively more beneficial to invest in interest bearing investments.