Gold Holding In Face Of Equity Meltdown
(Kitco News) - The sell-off in equities gained momentum overnight as globalinvestors stewed over the weekend following Friday’s carnage. The market wasalready stretched and the rise in the yield curve and a hawkish Fed was thecatalyst that created the sell-off. Metals reacted as in past equity marketsell-offs, with investors initially raising cash to meet margins and pick up perceived value. Today will be a key indicatoron whether this sell-off is a healthy correction or a more ominous trend. Asell-off at the open with a retracement to a positive print by the close wouldsuggest the former. Gold should find support at these levels if the equitymarket stabilizes. Should this rout in the stock market continue, gold maycontinue under pressure as the “sell everything” to raise cash mantra unfolds.
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