Vol. 8, Issue 10, Part E (2022)

Gold has always been regarded as a unique raw resource due to its ability to retain value, particularly in difficult times. Since the 2008 mortgage crisis, gold prices have hit historic highs. Experts in the gold market now believe that gold is a haven and that demand is affected by the possibility of a catastrophic loss (or systematic risk). Several studies have shown that gold's safe-haven quality is reflected in price variations during times of crisis. Our objective will be to use the financial literature to further our knowledge of this widely held assumption. Indeed, we cannot discuss gold as a financial asset without mentioning its safe-haven characteristics. In other words, the most effective beneficiary of gold prices is uncertainty, which is frequently accompanied by extreme volatility and stock market disengagement.