Spot Gold surged on Tuesday, rebounding from a five-session decline after the Federal Reserve’s announcement to boostlending eased fears over a crunch in liquidity. It wasn’t safehaven buying that drove gold prices higher. We know that because Treasury and the U.S.Dollar are the true safehavens.
Additionally, U.S. equitymarkets recovered after Monday’s steep decline, after the Fedstepped in and putting moreliquidity into the economy. This triggered the relief rally in gold because buyers didn’t have to worry about selling tied to stock market margin calls.
Read More : MCX Gold Below ₹40150 Sell 100—500 Lots and Relaxxxx – Neal Bhai
If you’re still following analysts who believe gold is a safe-haven, or don’t understand that gold can rally when stocks, interestrates and the dollar rise, then stop. You can only hurt yourself. If you’re reading analysts who are inflexible and unwilling to think outside the box once in a while then you’re going to miss some bigmoves once in a while like the one wesaw on Tuesday.
