In Turbulent Times, Why Isn't Gold Shining?

The Usually Safe Investor Bet Lost Its Mojo As The US Fed Fought Inflation By Hiking Interest Rates And The Dollar Rose

- Sanjiv Shankaran

As Russian soldiers gathered on their country's borders with Ukraine at the beginning of 2022, investing in gold seemed a safe bet. Gold, after all, was the safe haven in turbulent times. When Russian soldiers crossed into Ukraine in February, conventional wisdom was proved right again as gold prices rose.

By end-September, however, gold prices measured in US dollars had fallen for the sixth straight month. "In a sense, it's counterintuitive," says Somasundaram PR, managing director of the India office of World Gold Council.