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

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congrats

NASDAQ futures vs Gold futures chart comparison since Jan. 1, 2020

Gold futures seen to be dropping since Feb 24, 2020....... seems there is no need to worry about Corona-virus???


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It's interesting that since Jan.1st 2020, both Gold and Nasdaq futures rallied.
  • Gold futures rallied by almost ~ 7%.
  • Nasdaq futures initially rallied but then dropped by ~ 6%
 
This more common since the last ten years. All assets move almost correlated. It is now more a risk on or risk off environment then an asset allocation environment.
 
Reason I'm hearing from someone who knows better than me is that people being margin called are having their gold liquidated first since that is more liquid and then they get rid of whatever stocks are still underwater later. So once the margin calls are done, you can expect gold to take off.
 
nooby_mcnoob said:
Reason I'm hearing from someone who knows better than me is that people being margin called are having their gold liquidated first since that is more liquid and then they get rid of whatever stocks are still underwater later. So once the margin calls are done, you can expect gold to take off.
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I was thinking this, everything getting sold
 
congrats said:
NASDAQ futures vs Gold futures chart comparison since Jan. 1, 2020

Gold futures seen to be dropping since Feb 24, 2020....... seems there is no need to worry about Corona-virus???


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seems there is to worry about margin call. Gold was kept by a lot of weak hands and finally is on the verge of collapsing.
 
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Gold gets sold in a market panic. Check 2008, gold sold off steadily throughout the year and collapsed 30% into the October/November crash phase.
 
cash and US bonds are king right now....folks are moving out of risk....
 
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