The gold price from highs of USD 1700 is now around USD 1500 per ounce, since 1st March 2020 to date. This triggered stop loss orders globally which would have been amended on a regularly basis to ensure a healthy profit margin is maintained in its upward trend to USD 1700 levels. In a crisis, now you are sitting in a comfortable place by booking profit through unwinding your positions in a structured and timely manner.
Pandemonium prompts investors to hold currency through liquidation of highly bankable assets. It is no surprise that gold prices have declined sharply as it is the most liquid asset to convert to currency. Assets de-value and increasingly at some stage in the short term due to knee-jerk market reactions. Gold will continue to be a safe haven asset for the longer term due to its asset value preservation.
