Investment: Gold Price Now Depends on Oil Price
Although investors are fleeing into safe investments, the price of gold is falling. Yet the precious metal is actually considered a "safe haven". Martin Müller thinks two reasons explain this phenomenon.
Investors have grown cautious and sold tech stocks ahead of the weekend, citing concerns over the AI trade. They instead turned to US government bonds as a safe alternative, causing the yield on 10-year Treasuries to fall below 5% on Thursday, its largest one-day drop in two years. The price of gold, typically considered a safe haven, fell to under $4000 per ounce, extending its correction, which has seen it lose 28% of its value since its peak in late January.
Analysts suggest that investors may have sold gold to cover losses in the stock market or meet margin calls, and that rising oil prices could further pressure the gold price.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- Investment: Gold Price Now Depends on Oil Price handelsblatt.com
