Gold price coronavirus losses top $250 an ounce
Gold’s pandemic failure surpassed $ 250 an ounce on 16th of march 2020 Monday, for the seventh consecutive day, as global financial and commodity markets continued to panic.
Gold for delivery in April fell on the Comex market in New York to $ 1,450 an ounce on Monday, a decrease of $ 65 an ounce or 4.3% from Friday’s closing price. Last Monday, the metal hit a seven-year high of $ 1,704.30.
By the afternoon, contracts for 53 million ounces of gold had changed hands, and gold has returned over $ 1,500 and is approaching the break-even level for 2020.
“The markets are panicking,” said Alexander Zumpfe, dealer at Heraeus Metals Germany, in an email to Bloomberg:
“The Fed rate cut didn’t change that – on the contrary.”
Gold “is sold to generate liquidity and offset losses in other markets,” said Zumpfe.
“In some cases, investors also sell their gold holdings to keep the value of the precious metal constant in their overall portfolio. Due to the lower value of the equity component, gold would otherwise have a larger proportion in terms of value. “
