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Gold: Maintaining its safe-haven status – OCBC

Gold seems to have lost its safe-haven allure in the past weeks. Logically, this makes little sense and is highly counter-intuitive, according to economists at OCBC Bank. 

Key quotes

“As Covid-19 started to invoke fears of a dollar liquidity crunch, gold became a ripe candidate for a selloff as was a highly liquid asset and one of the few markets still posting year-to-date gains.”

“Gold properties – rare, inert and high density – still makes it one of the top choices as an alternative asset to stocks and bonds.”

“The current liquidity crunch highlights inherent failings within the economic system and does not suggest gold has lost its status as a safe-haven.”

 

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