News: Gold price slides after Coronavirus-News, Dax jumps up

Gold Barren Beispielbild

The price of gold has been falling for exactly one hour from $ 1,561 to currently $ 1,552. There is a very clear reason for this. It’s the same reason why at the same time the share prices are rising very well at the moment. The Dax and Dow have been jumping up for an hour. In the following chart we have superimposed the gold price (falling) with the Dax on a CFD basis (rising). The chart goes back to last night. At 9:30am Sky News in the UK reported that a British researcher may be making good progress in the fight against the corona virus. There would be no vaccine before summer anyway. But the stock market is currently pleased with the possible progress. This reduces the risk that the economic losses caused by the coronavirus will continue for a long time to come. But we should leave it to the experts to decide how much more in-depth this issue is going to be.

Whatever. Dax and Dow are up +170 and +190 points. At the same time the gold price falls from 1,561 to 1,552 Dollars. Why? When in the eyes of the traders a risk like the one caused by the coronavirus becomes smaller (out of Risk Off, back into Risk On), they are more willing to go into risky investments, for example into stocks. This makes interest-free gold less attractive and the price of gold falls rapidly. At first, for now, there really does not seem to be any positive news that could bring the gold price up. This may change again, but as we said, for this moment the situation looks bearish.

Verlauf von Goldpreis vs Dax seit gestern Abend

Yesterday the gold price reached a low of 1,549 Dollars. Is it about to drop below that level? (Second chart shows gold in US Dollars since January 20th.)

Goldpreis seit 20. Januar
Please follow and like us:

Be the first to comment

Leave a Reply

Your email address will not be published.


*