Most budgetary markets have been intensely affected by the across the board transmission of coronavirus and bombed oil exchanges among Russia and OPEC. The auction has even influenced customary place of refuge resources, similar to gold. Besides, its crypto reciprocals are falling similarly as hard.

Gold Isn’t Immune to Sell-Off

The prized mineral is one of the most well known place of refuge resources during times of budgetary trouble.

Throughout the years, gold has demonstrated that it is one of only a handful scarcely any advantages that normally increments in esteem when the financial exchange drops.

Notwithstanding, costs for the valuable combination have made a crash in stride with the equal auction across most money related markets.

Spot gold plunged almost 2.86% today to hit $1,470 per ounce just because since December 2019. Similarly, the S&P 500 dropped over 7% and Bitcoin has essentially recuperated in the wake of seeing its value breakdown by 17% on Monday.

Gold’s sudden downward swing took many by surprise. Ole Hansen, head of commodity strategy at Saxo Bank, believes that investors could be taking profits to meet financing requirements on leveraged positions in other markets. 

“Gold’s lack of positive response overnight to rate cuts and QE [is] a clear indication that it is not immune to the ongoing across markets fire sale to raise cash,” said Hansen. 

While the flight from gold intensifies, cryptocurrencies pegged to the metal are also suffering. 

Digix Gold Token, a gold-backed token, dropped 2.7% in the last 24 hours and currently trades at $47.6. Meanwhile, Tether Gold—a cryptocurrency that is price-pegged to the precious metal—saw its price dive in lockstep with the bullion, as expected. 

Loss of confidence in the yellow alloy shows how panicked the market is. This behavior is clearly visible in the Fear and Greed Index as well as the Crypto Fear and Greed Index, which have been indicating extreme levels of fear for several weeks.

For the time being, it seems like cash is the only safety that market participants could fly to, according to Naeem Aslam, chief market analyst at AvaTrade. 

“The traditional rules are out of order and there is nothing which can be classified as safe haven—not even gold,” said Aslam. 

source: cryptobriefing

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