Gold Joins the Virus Sell-Off With Its Biggest Slide Since 2013
- Investors are selling the metal to cover margin calls
- Gold’s status as a haven loses luster amid virus concerns
Photographer: Carla Gottgens/Bloomberg
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It is an odd moment for gold to be tumbling. One of the oldest and most-trusted safe havens in times of crises, gold typically rallies amid nasty stock sell-offs like the one that has gripped the world this week.
So its plunge Friday -- it fell as much as 5%, the most in almost seven years -- caught many traders flat-footed and scrambling for explanations as to what had just happened. The most often heard of them: Gold investors don’t want to sell but are forced to cover the losses in other asset classes.