Gold drops but still has luster long term

FOX BUSINESS--Gold prices fell 3.2% Thursday but experts say the dumping of the yellow metal is likely a short-term trade and the precious metal remains attractive. Amid extreme volatility, investors are being forced to cover losses in other corners of the market brought on by concerns over the escalating coronavirus outbreak. 'Margin calls and losses in other markets are driving investors to search for cash, and gold happens to be the liquid position they are choosing to cash out on,' wrote Christopher Louney, commodity strategist at RBC Capital Markets....The COVID-19 outbreak has infected 118,332 people worldwide and killed 4,292, according to the latest figures provided by the World Health Organization....Typically, investors flock to gold during times of economic uncertainty, but in some instances, like the current global health crisis, even those assets that are considered safe-havens can see indiscriminate selling as investors seek to raise cash. 'Gold's role as a 'perceived safe haven' is largely what got us here, and despite these sharper moves lower, we do not think it represents the end of the risk-off narrative for gold,' Louney wrote."