Commodities Corner: There’s a simple reason that gold is falling along with coronavirus-afflicted global stocks

Commodities Corner: There’s a simple reason that gold is falling along with coronavirus-afflicted global stocks

There's a simple reason that gold is falling along with coronavirus-afflicted global stocks. "Investors are selling anything with a bid and running for cover, and that includes typical hedges like gold," said Brien Lundin, editor of Gold Newsletter.. "We saw similar behavior during the 2008 financial crisis and once investors understood and appreciated the scope of central bank stimulus coming down the pike, they began buying gold," he said.. It was looking at a weekly loss of 3.8%, and lost a grip on a gain for the month.. A daily percentage loss of the size for a most-active contract would have been the largest since June of 2013, according to FactSet data.. The gold market has had heavy fund holdings grow heavily over the last several months' run-up in gold that now, with the general markets selling off, some of that excessive positioning is being shaken out.". Likely adding to pressure on gold prices: "Physical transaction in China and India are typically conducted face to face, and we anticipate that these transactions are going to plummet as the coronavirus crisis plays out," said Peter Grant, vice president of precious metals at Zaner Metals, adding that these two countries account for