Gold caught in the downdraft
The main risk to gold right now is that there is a sovereign strain somewhere and begins to sell reserves. You could see an emerging market getting hit by the virus and needing to raise cash in a sharp slowdown, then tapping reserves to do it.
At the moment, gold is simply falling because everything else is falling. There is a massive de-risking going on, especially among money managers. They're selling everything and gold is sucked into that.
This isn't dissimilar from the financial crisis when it also fell initially. It took off when central banks cut to zero, launched QE and governments unleashed massive stimulus. At some point the same thing will happen here but, as always, timing it is key.
