Because of a safe harbor! – Therefore the gold price could not benefit from the Corona sell-off

Many investors are currently very unsettled because the gold price has not yet triggered a price rally despite the crash on the stock market. Is there still time for the countermovement or is the precious metal no longer a safe haven?

The yellow precious metal has been considered a “safe haven” by investors for centuries. In the current crisis, however, the gold price does not deliver the performance desired by some and therefore disappointed many gold bulls.

 

Negative correlation is overridden

The gold price has increased in recent weeks due to the huge sell-off on the global stock markets, but it clearly shows that there has not been a negative correlation – expected by many investors – in this context. Accordingly, the slight increase in the price of precious metals could not compensate for the percentage losses on the stock market. At times, there was even a certain synchronism in the markets between gold and shares.

 

Whine at a high level!

Even if the big rally on the gold market has not yet started, the prices of the precious metal continue to swing north. The price per ounce has meanwhile regained its important mark of 1,650 US dollars. In addition, the yellow precious metal managed to climb a new all-time high on a euro basis at a price of 1,560 euros. But gold could not overcome these price levels permanently.