Like any investment or financial asset, there are advantages and disadvantages of investing in gold. Like any commodity, gold is subject to supply and demand pressures, which cause the price to fluctuate, depending on a wide range of global factors.
Greater investment demand for gold is driven by its safe haven properties: a safe bet in times of economic and political uncertainty. As stock market risk increases, investors flock to safe haven investments like gold, spurring demand that then drives the commodity price up. This is why the price of gold often moves in opposition to volatility in markets or economies.