Why gold is not like other metals

The gold price may have slid south along with other metals in recent weeks, but it will soon decouple.

As expected, more talk of a slowing US economy caused base metals prices to continue their decline last week and, as expected, falling base metals prices dragged the gold price down as well. Very few institutional investors differentiate between gold and other metals; they bought them all as a hedge against a weaker US dollar, so when they finally wrapped their heads around the fact that the US economy can slow down and that a slowing economy will cause a decline in base metals demand, they started selling their metals - including gold.

Metals prices: why are they falling?

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