The price of gold fell yesterday, which was its third consecutive session of loss. In spite of the fall in stocks and indices.Gold with delivery in April fell by 7 dollars, or 0.5% to 1 329.50 dollars per ounce, after a decline on Monday. Earlier in the day, the price of gold rose to $1 349.30 per ounce.
There is no guarantee of rising gold when asset prices fall. In fact, the metal may decline as a result of sales by portfolio managers who close positions to cover losses from other positions. But this is part of the role of gold as insurance because it offers deep and unique liquidity.
US stocks rose somewhat on Tuesday, after exclusive Friday and Monday auctions, when the biggest daily drop of Dow index was recorded in its history. The index lost more than 1,100 points on the first day of the new week.
Despite the depreciation of assets, gold does not play a rescue asset because there is no real panic on the market, according to Naemie Ashlam, chief market strategist at ThinkMarkets.
According to the expert, if the panic of the market was a factor, we had to see a very strong growth in the price of gold and other precious metals.
In addition, the dollar's strength also hurt the performance of gold and other assets.
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