Gold suffering due to unrealistic optimism in equities mkt.No one knows anymore which way is up or down...and for how long. Gold just hit US$ 1720 but will it remain or even go higher?
Here's an article that discusses this investor dilemma further.By Allen Sykora of Kitco News:
The stock market sold off sharply due to economic fallout of the COVID-19 pandemic, but has recouped much of the decline.
“The short-term economic outlook is looking terrible and it is likely to become even worse as more data gets published,” Sayed said, pointing out that the ADP private-sector job report on Wednesday showed the loss of a record 20.24 million jobs.
“Right now, the optimistic V-shaped recovery does not look like a realistic scenario for several reasons,” the strategist said. “An upturn of this type means that most of America and the world needs to get back to work soon, but that does not seem at all reasonable when looking at trends in COVID-19 infections.”
"...sees gold prices pushing back to $1,800 an ounce in the second half of the year. He added that the yellow metal could see further weakness in the near-term."
https://www.kitco.com/news/2020-05-07/Gold-suffering-due-to-unrealistic-optimism-in-equity-markets-FXTM.html