New Delhi, Sept. 18 -- A sharp rise in gold prices has historically been seen as a signal of weak stock market sentiment. However, brokerage firm ICICI Securities believes that, at this juncture, viewing gold prices as an indicator of equity-market risk may be misplaced.

"Excluding the post 'Nixon shock' period of the 1970s and 80s, gold has largely had an inverse correlation with stocks; thereby, establishing it as an excellent risk signal for equities. We believe, post 2022, we have entered a phase where gold prices, as a signal for risk in equities, may be unreliable till the ongoing reset in gold prices is complete," said ICICI Securities.

"Since 2022, gold and equities' inverse correlation seems to have faded, like it did in the 19...