Gold Futures dropped almost 3% since Feb. 24, 2020

Discussion in 'Commodity Futures' started by congrats, Feb 28, 2020.

  1. Recalling other large declines.... Gold, just like now, having been touted as "insurance" against the decline, ended up not. Initially golds resisted the decline but soon "caught up" with the downside move. (I recall one time when the market puked and I was "wiping my brow, glad I was in golds" as they initially rallied against the down market. Unfortunately, didn't last long... and gold soon smashed too.)
     
    #11     Feb 28, 2020
  2. Specterx

    Specterx

    Yeah. On the other hand, in 2008 the decline was quickly reversed and gold was back near its highs in just a few weeks - more or less as soon as the acute panic selling dried up. This makes sense, seen as a reversion to fair value once the forced margin-call selling pressure abates.
     
    #12     Feb 28, 2020
    congrats likes this.
  3. congrats

    congrats

    • Gold doesn't seem to be safe heaven, dropped by almost 6.75% since last 2-3 days.
    • Cash definitely is a safe heaven....cash is king.
    • Need to get bond performance for apple-to-apple comparison.
    • Screen Shot 2020-02-28 at 8.22.29 AM.png
     
    #13     Feb 28, 2020
  4. congrats

    congrats

    • Gold doesn't seem to be safe heaven, dropped by almost 6.75% since last 2-3 days.
    • Bonds seems to be worst safe heaven. Market dropped, Bonds plunged and then emerged. But net YTD gain is -15% for US 3 month bond yield.
    • Cash definitely is a safe heaven....cash is king.
    Screen Shot 2020-02-28 at 9.29.27 AM.png
     
    #14     Feb 28, 2020