The coronavirus continues to scare investors as the death toll mounts. Sporting events cancelled, university classes going online, hoarding at grocery stores (although not in my neighborhood), etc.
Seemingly, investors are dumping gold for US dollars. Who woulda thunk?
(Bloomberg) — As panic engulfs global financial markets, the dollar stands out as a haven.
Investors are betting on the greenback as the only safety net amid growing concerns about a liquidity crunch and a global recession. Even gold is losing its luster and the rush out of emerging-market debt has been swift and brutal.
“It’s shock after shock that’s now prompting people to liquidate even gold to make sure they’re keeping cash in pockets,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “Holding U.S. dollars as a safety buffer cannot be underestimated.”
Gold is down again today but silver is getting blasted.
Gold volatility is skyrocketing.
Equities are on the rise with the prospect of more monetary and fiscal stimulus.