Not even the safe haven of gold has been spared from this week’s global market rout.
Bullion is set for its biggest weekly loss since 2016, despite climbing to the highest in more than seven years earlier this week, as investors sell the metal to meet liquidity needs. Volatility continued in equities as markets try to gauge whether emergency fiscal and monetary packages will be enough to stave off a recession amid the coronavirus pandemic that’s hitting the world economy.
The sell off in equities this week has triggered margin calls, with investors looking for opportunities where they can cash in. At the same time, a stronger dollar has also curbed gold’s appeal.