In search of a safe haven, investors are flocking into the U.S. dollar Tuesday and out of risk assets including commodities.
Concerns about the ongoing situation in Greece and the euro zone as well as perceived weakness in the global economic recovery are some of the drivers.
“Despite the fact that China downgraded its growth forecast Monday amid concerns about a double-dip in Europe, markets have today decided — somewhat belatedly — that this is a bad thing, and have turned sharply lower”, writes Michael Hewson, CMC Markets UK Sr. Market Analyst. Stocks opened weak in the U.S. markets and continued to slide throughout Tuesday morning.
In the precious metals complex gold , silver , platinum and palladium all sold off as the dollar strengthened.
“Gold is trying to anticipate something in the geopolitical monetary story,” says Richard Hastings, Global Hunter Securities Macro Strategist. Investors are worried “that the dollar would be exclusively strong” and are lightening up on other dollar based assets including gold.Page 1 of 3 | Next Page