Old fashioned gold turns positive as crypto rout spills over into a broader risk-off trade
Gold flat on the day
It's is getting ugly out there.
The crypto tide has gone out and it's led to some broader risk-off flows (or is a symptom of them). Whatever it is, the whole market is recoiling at the moment. Even USD/JPY has come under some quick selling pressure, falling 30 pips back to unchanged on the day.
Meanwhile gold is proving to be a old-fashioned store of value. It's rallied to $1874 from $1854 in the latest leg of the crypto rout.
I don't think there's anywhere to hide at the moment -- except perhaps bonds and the yen -- but when the washout is over and gold is still standing, it will slowly win back those investors.