by Anna Golubova
Friday March 13, 2020
Markets fear just how much the COVID-19 outbreak could hurt the U.S. and Europe — the next two regions that will be hit the hardest by the virus. And as the Federal Reserve looks increasingly ready to cut rates down to zero all in one go next week, it might be a great opportunity to buy gold, according to analysts.
Gold was not able to escape the massive market sell-off this week, which accelerated on Thursday as U.S. stocks posted their worst day since 1987. Gold fell victim to margin-calls, as investors were forced to sell their gold positions to cover for losses elsewhere.
“We suspect that margin calls and losses in other markets are driving investors to search for cash, and gold happens to be the liquid position they are choosing to cash out on,” said RBC Capital Markets commodity strategist Christopher Louney.
Read more via: https://www.kitco.com/news/2020-03-13/What-s-next-for-gold-price-COVID-19-targets-U-S-Europe-Fed-looks-to-cut-rates-to-zero.html