Woofun AI reports that Capital Economics strategist Thomas Mathews asserts gold retains its function as a hedge against severe equity market downturns. Recent price action has mirrored "risk" asset behavior, with volatility levels aligning closely with the S&P 500 index.

Despite underperformance during Middle East tensions, the inverse relationship between gold and real bond yields persists. A projected decline in real yields is anticipated to provide upward pressure on gold prices.