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Barron’s Penta/Abby Schultz/3-17-2020
“As stock markets dropped precipitously in recent days, the price of gold – considered a safe haven from riskier assets like stocks – has fallen too. But gold didn’t fall nearly as much. True, the front month of Comex gold for March delivery – one measure of the yellow metal – lost 11.26% in the last five trading sessions to end at $1,485.90 on Monday. Yet consider that the 1.97% drop on Monday took place as the Standard & Poor’s 500 tumbled nearly 12%.”
USAGOLD note: A point similar to the one we made in our Afternoon Update last Friday (A little perspective ……) which included the two charts immediately below. The first shows gold outperforming stocks by a wide margin over the past 12 months. The second shows gold outperforming stocks by a wide margin year to date. Most of the recent correction in the gold price is accounted for in both charts.
