“In 2008, when Lehman filed for bankruptcy, the immediate impact to financial markets was very similar to the reaction that we have witnessed as a result of COVID-19. Both events caused significant sell-offs in global equity markets and a flight to safety from investors, which was predominantly into USD,” said Jon Deane, CEO of InfiniGold, which has issued a digital gold token on a public blockchain.
Gold is down slightly on the day as of 20:00 UTC. “A devaluation of global currencies and long-term negative rates are both very positive for gold,” InfiniGold’s Deane noted. Cryptocurrency traders track gold closely, and watching other precious metals such as silver has also becoming a popular activity.
Despite markets fairing well, they are still on shaky ground given uncertainty surrounding the coronavirus’ affects on the economy. Worries about the U.S. Federal Reserve’s policy of limitless quantitative easing (QE) worries traders about the future prospects of the dollar.
This content was originally published here.