NEW YORK – JANUARY 9: Gold bullion bars are seen for sale at Manfra, Tordella and Brookes, Inc. … [+] Gold prices took a significant tumble Wednesday. But that doesn’t mean that long-term gold investors should turn bearish.
Yes, the drop in prices was swift and in some ways abrupt. Front month gold futures dropped from a high around $1,910 a troy ounce early Wednesday to around $1,880 recently, according to Yahoo data . The SPDR Gold Shares (GLD) exchange-traded fund, which holds bars of solid bullion, moved in a similar way.
But here’s what’s really happening, and it is nothing to do with investors souring on gold as a long-term strategic asset.
First, stocks dived Wednesday on the back of the news that infections of the COVID-19 virus have ballooned, prompting the U.S and Europe to implement stricter lockdowns. By mid-afternoon, the S&P 500 was down 2.9%, and the SPDR S&P […]
October 29, 2020 (updated October 29, 2020) Published by StockMan