COVID-19 Gold Price Falls as Investors Liquidate Assets over coronavirus fears.
As investors liquidated everything to cover losses as coronavirus outbreak create panic, the price of gold fell by Rs 1,097 to Rs 42,600 per 10 gram in Delhi. The drop gold prices is lowest in nearly seven years.
COVID-19 Gold Price Falls as Investors Liquidate Assets over coronavirus fears
“A significant sell-off in equities would place further pressure on gold as investors would liquidate positions to meet margin calls,” said Navneet Damani, VP, Commodities Research, Motilal Oswal Financial Services.
Price of silver also fell by Rs 1,574 to Rs 44,130 per kg from Rs 45,704 per kg on Thursday.
“There is a lot of panic in the market and even safe haven assets are getting ditched to cover losses in the wipeout,” added Damani.
“Gold prices traded volatile on Friday with international spot gold prices hovering near USD 1,585 after witnessing sell-off on Thursday’s evening session,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said. Spot gold for 24 karat in Delhi was trading lower by more than Rs 1,000 on rupee appreciation, said Patel.