Gold is the only thing to own after Fed cuts rates to zero

NEWS SUMMARY: Precious metal prices fell Monday as investors struggled to find liquidity amid the stock market sell-off. U.S. stocks fell sharply even after the Fed embarked on a massive monetary stimulus campaign to offset slower economic growth amid the coronavirus outbreak.

 KITCO--"A cacophony of instability has hit financial markets at the start of a new trading week, but with central banks, led by the Federal Reserve, dropping interest rates to zero, analysts now say that the only place investors can turn to is gold....The Federal Reserve surprised markets with a second emergency rate cut in as many weeks. Sunday afternoon, the U.S. Central bank said that it was bringing interest rates to within a target range of 0% to 0.25%. 'The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range,' the Fed said in a statement. Some market analysts have described the latest emergency Fed decision as another panic move. Still, expectations of a global recession continue to rise as the coronavirus continues to spread worldwide, prompting nations to effectively shut down....'I think the only thing you can own right now is gold,' said Adam Button, managing director at Forexlive.com. 'The deficits are doing to be outrageous,' he added. 'During the financial crisis, the government had to bail out the banks, but now because of the impact of the virus, they are going to have to bail out everyone.'....Analysts note that gold continues struggling as crashing equity markets are creating a liquidity crisis for investors. Investors are forced to liquid assets like gold to meet margin calls...However, he added that when the dust settles, gold will be the asset to own."