On Wednesday gold price fell to the lowest level in more than 19 months, even though equity market is under pressure, Bloomberg reports.

Precious metal was serving as safe heaven investment showing growth during equity market fall. However, recently it demonstrates contrary behavior.

Weekly swings of gold price and index S&P 500 show the highest positive correlation in five years now. It means that they are moving in the same direction.

According to experts, gold role depends on situation. At present, the reason for market turmoil is decline in lira and other emerging markets currencies. This reason does not allow gold to perform effective role of hedge instrument. Most likely, central banks of emerging markets are selling gold, monetize dollar reserves, in order to support their currencies. If the current situation gets worse, gold price will drop further.