BREAKING: Precious metals crater along with equities

4:10 PM 28 February 2020

Precious metals were holding ground well earlier this year but while they are often seen as safe haven assets, this is not the case today. Gold is down 2.4%, Platinum 4.9% and Silver a stunning 6% as equity indices sink into the abyss. The reason is that leveraged investors that were relying on cheap funding are forced out of the market that is striving for cash. Precious metals saw heavy net speculator positioning and while these assets can do well amid global slowdown longer-term, this positioning squeeze suppressing prices big time today (well investors can thank central banks for inflating asset prices now).  Silver sees a support line at $16.50 but honestly all these supports become irrelevant when prices crash.

 

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits