Further gains in global stock markets this year will be a signpost of more losses for gold, according to analysts, citing a re-established negative correlation between the two assets.
After nearly a decade of bullion broadly tracking stocks, as represented by the S&P 500 index, this year the opposite relationship materialised as share prices rallied.
While the S&P index has gained 10 percent so far on the year to date, gold is sitting firmly in bear market territory. After a brutal sell-off in April, it is nursing an annual loss of around 24 percent.
The S&P and spot gold showed a positive correlation between 0.6 and 0.9 from 2004 to 2012, after being negatively related between 1990 and 2003, according to data from Standard Bank Research.