Gold price getting crushed
Investors are dumping lower-yielding assets like gold to buy higher volatility securities like Tesla shares and bitcoin, said Gareth Soloway, chief market strategist at In The Money Stocks, but Soloway is not selling his gold yet.
“The one thing I would say to investors that are into gold is stick with it. This to me is a classic retrace, it’s had a great move up, it’s seeing a sell-off,” Soloway said.
“The shorter-term investors are saying, why am I in gold when bitcoin is going up 5% every single day, or 10% in a day, and they’re selling their gold assets.”
Soloway’s comments come as Friday’s nonfarm payroll report showed a loss of 140,000 jobs in December, the most since the start of the pandemic.
Inflation expectations were down as a result, with the TIP ETF falling on the weak jobs report. Inflation expectations are positively correlated with gold.