Gold just had its worst quarter since 2013. What that means for the metal’s role as portfolio hedge

Darla Mercado, CFP® | CNBC | July 9th, 2026

Gold’s portfolio role
There’s a case to be made for gold in that it’s historically held up in periods of major geopolitical shocks.

Gold has averaged a four-week return of 1.8% and a median return of 3% in the run-up to and during major geopolitical shocks between 1985 and 2024, an analysis by JPMorgan Private Bank found. Meanwhile, the 10-year Treasury and stocks both have posted average declines of 1.6% and median losses of 1.9%.

The metal is also a hedge against the dollar, according to Aliaga-Diaz. “When you have situations where perhaps the value of the dollar, the stability of the dollar and the credibility of the Fed are called into question, that’s probably when you will see flows going into gold.”

The mistake that investors make is expecting gold prices to move consistently in a way that will directly counter declines in stocks, advisors said.

“I don’t see gold as a direct hedge against the stock market, but it’s a great hedge against fear,” said Sam Huszczo, certified financial planner and founder of SGH Wealth Management in Lathrup Village, Michigan. “It’s a fine diversifying tool in a small amount.”