Gold brushed aside in the dash for cash

Gold recently slumped to a five-month low of under $1,600 an ounce as panicky investors ditched assets for cash.

So much for gold shining in bad times, many investors must be thinking. Last week gold slumped by 9% to a five-month low under $1,600 an ounce.

Last week's sharp sell off in risky assets instead boosted the US dollar, which, measured against its main trading partners' currencies, is at an 11-month high. In a panic, investors ditch assets for cash, and the world's reserve currency is the most liquid major currency.

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