RE:RE:Not a pretty day for precious metals.Correct me if I'm wrong (whoever is reading this), but Gold is seen a hedge against weak currencies, and inflation. What I've seen (and many others, I'm not special), gold has a negative correlation with the DXY (US Dollar Index). The stronger the dollar, the weaker the gold price.
In most recent news, the Fed want to stimulate the economy with their policy on not increasing the interest rates. In addition, the dollar is stronger because there's a sentiment that a second round of stimulus checks isn't coming to Americans.
Thus, there's options to play out:
- US elections go well, COVID doesn't spike in the US, businesses don't shut down, and the economy does a great V-shaped recovery, and gold price goes down.
- Gold price goes up.
It funken sucks to see the decreases but ... the one thing to keep in perspective is that the POG is still performing well (relatively speaking to a few months ago).
IMO, I'm only holding on because I truly believe the US dollar will take a hit due to COVID and the upcoming elections. However, if I knew anything at all I would have been out at 1.90 and in at 0.95 xD.