Gold is back in favor thanks to Fed’s emergency cut

Bloomberg/Elena Mazneva and Ranjeetha Pakiam/3-3-2020

“Investors are returning to gold as a store of value after the Federal Reserve’s emergency rate cut sparked a collapse in 10-year Treasury yields. . . ‘Gold rekindled its safe haven credentials yesterday after the Fed made the cut,’ said Ole Hansen, head of commodity strategy at Saxo Bank A/S. Gold benefits from both uncertainty and deeply negative real yields, he said.”

USAGOLD note:  Gold is reacting much differently now than it has in the recent past when quite often it seemed to be moving to its own internal rhythm. Now it seems to be reacting to events like it has in times past – almost immediately and aggressively both up and down. Usually, as the saying goes, gold takes the stairs up and elevator down. This past week, it took the elevator up.

Image courtesy of Visual Capitalist