Gold volatility jumps to four year high amid stock market panic

Bloomberg/Justin Vasquez and Elena Mazneva/3-9-2020

“Gold investors are bracing for increased market anxiety as the worst selloff in oil since 1991 spurred a massive slump in equities. Bullion jumped above $1,700 an ounce when markets opened in Asia, before pulling back, as money managers cashed in gains to cover losses in other assets. A 30-day measure of expectations for price swings for the metal climbed to the highest since December 2015.”

USAGOLD note: Gold is being tugged higher by safe-haven investors and lower by speculators unloading to cover losses in other markets.  Of the two, which has staying power and which the flash in the pan?  We will leave that for you to decide.  Those watching the gold market closely these days are well aware of the price volatility, as shown in the chart below.  At this juncture, volatility has translated to a rising price trend for gold, while for stocks it has been the opposite.

Chart showing current gold volatility at four year high

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