Is Gold a Hedge against Stock Price Risk in U.S. or Indian Markets?

We study whether gold acts as a hedge or safe haven in U.S. and the Indian stock markets. These two markets have been chosen representatives of developed emerging markets, respectively, are significant interest to long-term investors. apply linear regression GARCH technique monthly return series data on S&P500, BSE Sensex, prices. find that, for period our study, 1980–2020, has not served investors This holds true even across multiple sub-periods period. Gold returns do exhibit negative relationship with any market scenarios, i.e., times extremely low well periods high volatility. Equity can use findings this optimising their portfolios. Additionally, central bankers policy makers better outcomes respect policies holding gold.