Investment gold has always been associated with a safe value and for good reasons.
The current increase in the price of gold in times of stress shows that it still plays its role of safe haven. Indeed, the price of gold has taken more than 7% since its lowest level of late September. This increase can be explained by the dark month of October on the stock market; the bad numbers pushed investors to take refuge in the yellow metal.
This safe haven function could intensify in the coming months. Indeed, if one of the many factors of tension in Europe or worldwide (Italy, Brexit, trade war between China and the US,...) was to come true, the financial markets should pay the price and the price increase gold should accelerate.
As a reminder, the portfolio managers always advise to have a gold position of +/- 10% in order to secure their financial investments.