PRESS ROOM
Market volatility tests gold’s defensive traits once again
Monday 02nd November '20
With markets heading into risk-off mode again following renewed COVID-19 related lockdowns in Europe and elsewhere, gold’s defensive traits are being tested again. Just like in March 2020, gold’s initial reaction was down as the metal got caught up in investors’ de-risking and facing selling pressure as investors liquidate their holdings to meet margin requirements on other positions. However, gold is already showing signs of an uptick and we believe closely correlated silver will move up in its slipstream.