Bloomberg reports that BlackRock Inc. just delivered a double-barreled warning on the merits of holding traditional haven gold right now.

Bullion is proving to be a less effective hedge against moves in other assets, such as stocks, as well as inflation, according to Russ Koesterich, portfolio manager for BlackRock’s Global Allocation Fund. Moreover, gold faces headwinds should the recovery pick up pace, he warned.

Gold is “failing as an equity hedge,” Koesterich said, noting its positive relationship with risky assets was even stronger when compared with tech stocks. He added: “Gold’s ability to hedge against inflation has been somewhat exaggerated. While it is a reasonable store of value over the very long-term -- think centuries -- it is less reliable across most investment horizons.”

BlackRock says that right now gold isn’t working well as a hedge against either stock moves or inflation risks, although it was against the dollar.

“Absent a strong view on a declining dollar, I would own less gold,” Koesterich wrote, noting that the precious metal was still demonstrating a strong inverse relationship with the U.S. currency. “And for those investors still looking for a hedge, one word: cash.”