Gold is soaring past an eight-year high now, even as equities are rebounding, in a bizarre setup that sees the two moving in lockstep when traditionally gold would be a safe haven asset that replaces money in the stock market in times of crisis.
What it means is that our favorite safe haven asset is acting more like a riskier asset as it passed the psychological resistance point of $1,800 on Tuesday–a place it hasn’t been since 2011.
Driving gold up are plunging U.S. bond yields that do not seem positioned to reverse, amid economic recovery that appears to be flattening, another surge in coronavirus cases, and the political drama building ahead of November presidential elections.
KEFI Minerals plc (LON:KEFI) is an exploration and development company focussed on gold and copper deposits, primarily in the highly prospective Arabian-Nubian Shield.