All of the enthusiasm surrounding COVID-19 vaccines has left little room for pessimism, and by extension, assets that tend to feed on turmoil.
After hitting a record high of about US$2,075 an ounce back in August, gold is now deep in correction territory, having given back more than 40 per cent of its gains on the year.
TSX-listed gold mining stocks, meanwhile, have collectively slipped into a bear market, and gold ETF flows have turned sharply negative in recent weeks after attracting incredible sums of money for most of the year.
But some say an end to the pandemic need not spell the end of the gold bull market.
“We believe gold is in a transition phase; no longer a hedge for global turmoil and slowly becoming a hedge against reflation,” Craig Basinger, chief investment officer at Richardson GMP, wrote in a recent report.
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