Gold Is Moving More in Tandem with Equities, Says Xu of Credit Suisse

The video discusses the inverse relationship between gold and real yields, highlighting how rising inflation expectations and the Fed's policies have driven real yields lower. Gold is now seen as a reflation trade, moving in tandem with equities, which challenges its traditional role as a safe haven. The shift from Treasurys to gold as a hedge is examined, noting the positive correlation between gold and equities. The video also explores equity-specific hedges and market complacency, emphasizing the pain trade in equities, particularly in the tech sector.

What is the speaker's perspective on the current state of hedging in the market?

What are the potential risks mentioned regarding the ongoing talks in Congress?