Gold: Now everything is sold

In order to create liquidity or compensate for losses in other assets, obviously many investors see themselves selling gold. Although it falls behind less clearly than stocks or commodities, it currently does not do justice to its function as asset protection. The ECB’s measures to support the economy have been disappointingly received on the financial markets. If business breaks down by more than half in many sectors of the economy, even more low-interest loans or the deferral of taxes promised by the federal government are “a drop in the bucket”, especially since low interest rates have to be earned through corresponding profits. Just a reminder: During the financial crisis of 2008/2009, there was also a temporary drop in gold prices for yellow precious metals. Then it went steeply uphill again.

 

Crude oil: worst weekly drop since 2008

Despite today’s recovery tendency, fossil fuels face the highest weekly drop since 2008. So far, the US variety WTI has lost 22 percent and the North Sea brand Brent 25 percent. The reasons are known and the prospects remain uncertain and unpredictable. The globally observed travel restrictions and the cancellation of major events are likely to do little good for the demand for gasoline and kerosene.