Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
-- Published: Thursday, 11 October 2018 | Print | Disqus
– Gold gains 2.5% as stock markets fall globally – EuroStoxx -2%, FTSE -1.9%, Nikkei -4%, Shanghai -5.3% – Gold, silver outperform all assets in stock market rout – Trump accuses Fed of going “crazy” by continuing to raise rates – Huge spike in VIX and volatility on deepening concerns of market correction or crash
1 Day Relative Performance (Finviz)
Gold has gained 2.5% today on safe-haven demand as sharp declines on Wall Street spread throughout Asia and Europe.
Stocks in Europe have slumped to a more than 18-month low after sharp losses on Wall Street, centered on tech stocks and the Nasdaq.
The worst losses in eight months triggered a significant sell-off in stocks in Asia. China’s main stock indexes slumped over 5 percent and MSCI’s broadest index of Asian shares not including Japan ended down 3.6 percent, having struck its lowest level since March 2017.
It meant MSCI’s 24-country emerging market index had its worst day since early 2016, after Wall Street’s swoon had given the 47-country world index equivalent its worst day since February.
The losses were not helped by President Donald Trump accusing the Federal Reserve of going “crazy and “loco” as trade wars appear to be intensifying.
The VIX or Cboe Volatility Index has more than doubled in the last week. The huge spike in volatility comes as there are deepening concerns of a major market correction – particularly in the U.S.
Gold and silver, the traditional havens in times of volatility, are again displaying their lack of correlation and frequent inverse correlation (over the long term) with risk assets. The precious metals’ hedging benefits to investors portfolios are being seen as they again benefit from a safe haven bid exactly when investors need it.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
