Gold is making the comeback investors deserve and it’s happening right now
Gold prices dropped nearly $80 as most asset classes are tanking after the rapid spread of coronavirus, gold may still be working as it is supposed to be according to some experts. Gold has always been a safe haven asset to investors, and as safe-haven asset’s do, it is converted into cash in times of need. Thursday the most active gold futures fell $52 settling at $1590.30 an ounce. That set the largest one day decline seen since Feb. 28, 2013.
One of the reasons for these losses for gold are due to coronavirus scares that have affected all assets that are being traded. Gold is not only taking a huge hit, but the S&P 500 and Nasdaq Composite are also poised to join the Dow Jones Industrial Average in ending an 11-year long bull market. On top of that, Bitcoin has seen a 48% loss this month alone.
Another key driver behind the drop is the solid rebound staged by mortgage rates this past week as lenders sought to stem the tide of people looking to refinance their home loans. Loading up on gold (GLD) and gold mining shares like (NUGT) or (JNUG) would be a smart play moving towards the future, as these assets are bound to rise and we should see it sooner than later.
March 17, 2020