Old fashioned gold turns positive as crypto rout spills over into a broader risk-off trade – ForexLive

Gold flat on the day

Gold flat on the day

It’s is getting ugly out there.

The crypto tide has gone out and it’s led to some broader risk-off flows (or is a symptom of them). Whatever it is, the whole market is recoiling at the moment. Even USD/JPY has come under some quick selling pressure, falling 30 pips back to unchanged on the day.

Meanwhile gold is proving to be a old-fashioned store of value. It’s rallied to $1874 from $1854 in the latest leg of the crypto rout.

I don’t think there’s anywhere to hide at the moment — except perhaps bonds and the yen — but when the washout is over and gold is still standing, it will slowly win back those investors.

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