Investors Hunting Liquidity Are Selling Gold to Ride Out Turmoil
- Bullion now below $1,600, after hitting multi-year high Monday
- Equity rout spurs margin calls, pushing investors to cash in
This article is for subscribers only.
As a slump in global markets continues unabated, investors are selling gold to meet liquidity needs by cashing in on the haven’s previous gains.
Bullion tumbled below $1,600 an ounce Thursday, a dramatic U-turn for prices that reached their highest level since 2012 at the start of this week. Indeed, its earlier advance due to its status as a haven during market turmoil may be why gold is being dragged down now.