The US presidential election is a highly publicised event, taking place every four years at the beginning of November. The Election Day is fixed as the Tuesday after the first Monday of November in years that are divisible by four. This year, it falls on Tuesday, 5 November.

A sudden spike in the VIX index and shifting monetary policies have left markets on edge. With Big Tech under scrutiny, economic indicators wavering and the US elections around the corner, could we be approaching a turning point for the global economy?

The price of gold has risen significantly in US dollar terms, and often even more in other currencies. From mid-2022 onwards, many investors were surprised that the price of gold moved up while US real rates also increased. Historically, gold performed well when US real rates (nominal rates minus inflation) fell, and vice versa. So, why has the correlation between gold and US real rates changed? Why has gold performed so well when real yields rose?