"Gold Has Become An Inverse Oil Trade": Goldman Explains Why Bullion Ripped As Brent Crashed 20%

For most of the year, gold has done the opposite of what a "war hedge" is supposed to do.

The US/Israel strikes on Iran on February 28 sent Brent screaming as high as $124, and gold, instead of soaring, went from a record above $5,600 in January to below $4,000 by Monday. This week the script ran in reverse: Brent tumbled 9% on Wednesday after the Democratic sweep and Trump's "no immediate plans" for new Iran strikes, taking its weekly loss to roughly 20%, while gold jumped more than 3%, its biggest daily gain since August, and was trading around $4,130 this morning.