Fear Pushing Investors Back To Gold: The Fed Will Lose Control of the System, Dollar Will Be Worthless, And Investors Will Flee To Gold As A Safe Haven During Crisis
November 10th, 2012
Fear Pushing Investors Back To Gold
The post U.S. election recovery in the gold price is yet another sign that the ‘fear trade’ is beginning to impact the gold market as investors seek safe havens again
Gold’s price pattern since the results of the U.S. Presidential election has been an interesting one. Most analysts had predicted that gold would rise if President Obama retained his position, and now other factors have come into play – perhaps most noticeably that the post-election nervousness about the path of the U.S. economy, coupled with no end in sight to the Eurozone problems (indeed things appear to be getting worse with expectations that the Eurozone is heading for recession – including mighty Germany).
What had been surprising about the path of the gold price through the past year or so is that it often fell back on poor global economic news when the old safe haven arguments for the yellow metal might have been thought to come increasingly into play