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Gold’s having an identity crisis

by Peter Brimelow, MarketWatch:

 

If gold’s a safe haven, it certainly hasn’t been acting like one.

Gold futures GCQ2 +4.05% ended May with a loss of 6%, the metal’s fourth-straight monthly decline.

“We are in the midst of a cash crunch globally due to the banking issues in Europe,” said Vedant Mimani, lead portfolio manager of the Atyant Capital Global Opportunities Fund, a precious metals-focused fund based in Miami.
“Whenever liquidity becomes problematic, such as it is now, assets will be sold down to meet loan and margin calls and get accounts back in line — and that is precisely why we are seeing gold sell off alongside other risk assets,” he said.
These days, any investment appears to be risky and it’s tough for investors to find safety in any asset, though the U.S. dollar and Treasury bonds have attracted more attention.

Read More @ MarketWatch

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