Investors are not moving to the historic safe haven of gold as sharemarkets across the world adjust to market plunges brought on by rising US interest rates.
Gold, which is trading about 7% up on price a year ago, was in New York yesterday initially trading around $US1343, but edged down to trade within a range of $US1320-$US1325.
Craigs Investment Partners broker Peter McIntyre said large fund managers would have had ''auto-sell'' on stock which kicked in when interest rates were predicted to rise 2.5%-3%, so took ''first mover advantage'' to secure the higher rates.
''The [waning] gold price gives some clarity around the correction. If investors were overly concerned they would be bidding gold up,'' he said.
Mr McIntyre expected global market volatility could continue for the next ''one to two weeks'', but he did not expect investors to turn to gold for its status as a ''safe haven in times of crisis''
''This isn't like the [2007-08] credit crisis. It's a rise in interest rates and fund managers are taking a first-mover advantage,'' in selling stocks for bonds, cash or US Treasury notes, he said.
