Delayed Quote. Delayed  - 09/17 12:51:55 pm
1752.08USD -0.10%

Gold: Even safe haven assets are shunned

03/16/2020 | 08:28am
The gold, which only a few days ago was still flying at its 7-year high of 1700 USD, is no longer a bulwark against the collapse of the stock markets. The coronavirus and its batch of exceptional measures taken by political decision-makers do not spare the barbaric relic, which is supposed to play a role as a safe haven in these troubled times. In a normalized context, the shocks would have paradoxically been aligned to see the price of gold explode: accommodative monetary policies, increased risk aversion, lower bond yields, etc. But this means ignoring the current situation of investors, who are forced to take their losses on the equity markets to cope with their problems, their margin calls on their equity positions, or to get cash in priority. However, it is important to put into perspective the losses incurred by a tie. The latter has actually lost 15% since the beginning of the month, while the CAC40 has lost more than 30%. We can thus say that a tie is the least bad thing that strikes the golden metal. In daily data, the golden one comes back to test a major support; 1450 USD. This is the last bulwark that buyers can exploit before testing the long-broken, long-broken, buyer-busting wall, $1,370. This horizontal level also corresponds to the 50-period moving average. A technical rebound can thus take shape on this price zone in order to rally the 1530 USD initially.
© 2021
Copier lien
All news about GOLD
23m ago
1h ago
1h ago
3h ago
4h ago