Gold surprised market participants in March by moving in tandem with equities, when it was expected to do the opposite. When there is a sharp fall in asset markets, you can only sell what is liquid, profitable and has low impact cost. Thus gold saw temporary sell off on account of a need to raise cash for margin calls to cover losses elsewhere. Gold experienced some downside corrections at the start of the global financial crisis, too, weighed down by a world seeking safety of dollars, requiring forced sales of liquid assets like itself.
Health, life insurance premiums need a tax cut? GoM to meet on October 19
Read More