Will the gold rally continue?

Contrary to common perception, gold is both cyclical and volatile, like any other asset class. The high made in September 2012 of Rs 3,077 per gm was followed by a correction of 27.6%, and it took seven years to cross the previous peak; the correction in USD/oz was as steep as 45%. The CBOE Gold ETF Volatility Index, which measures the market’s expectation of 30-day volatility of gold prices, has ranged between 10 and 55 over the past decade, the highest reading recorded as recently as March 2020. Volatility in gold prices over the past decade questions its perception of a stable asset class.