Email of the day (2)
On whether gold would weaken in a stock market decline:
"Do you expect gold to retreat if stocks continue to drop or is this time different?"
David Fuller's view It depends on the degree. One or two days does not make much difference, as you saw last week. However, if Wall Street were to go into a clear medium-term downtrend, all commodities would follow. People would sell gold for fear of profit erosion or to offset losses elsewhere. The only consolation would be that gold would probably fall less, as we saw in 2008.
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