We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Breaking news

Federal Reserve Announce $2.3 Trillion in Loans to Support Economy

Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 4.22% Silver: 2.57% Gold: 2.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aLOug7Zqhq
  • Fed Chair Powell: - Ability to lend and create money is only limited by the law - BBG
  • Fed Chair Powell: - Expecting Q2 to be very weak - Recovery should be quick when people start returning to work $DXY
  • New York Fed Purchases $6 B in Treasury Coupons
  • Heads Up:🇺🇸 USD U. of Mich. Sentiment (APR P) due at 14:00 GMT (15min), Actual: N/A Expected: 75.0 Previous: 89.1 https://www.dailyfx.com/economic-calendar#2020-04-09
  • Merkel: - Measures to slow virus will not likely need tightening
  • Merkel: - Spread of virus shows signs of slowing in Germany
  • Alongside reports that UK Prime Minister Boris Johnson’s health is improving after he contracted Covid-19 and was moved to an intensive care unit, that should give $GBPUSD a near-term boost. Get your GBP/USD market update from @MartinSEssex here: https://t.co/hhgLDWnX60 https://t.co/aLlYpmWhdk
  • Mnuchin: - Pres. Trump will address more hospital aid in next bill - New Fed facilities will create up to $2.3 T of liquidity - Fed facilities will be flexible
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.76% France 40: 1.65% Wall Street: 1.52% US 500: 1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tM96Oq3y4W
Gold Prices Suffer Worst Daily Decline Since 2013, Virus Fears Forefront

Gold Prices Suffer Worst Daily Decline Since 2013, Virus Fears Forefront

2020-02-28 19:30:00
Thomas Westwater, Contributor
Share:

Gold Talking Points:

  • Gold suffers worse intraday drop since 2013
  • Equities hammered as gold drops in rare correlation
  • Recent support eyed to stem further gold losses

Risk aversion in markets hit a fever pitch in recent days as coronavirus fears inject worry over the global economies’ ability to weather its impact. Despite the severe move seen across markets today, prompted by increasing concerns over the coronavirus, gold sold off along with equities to defy its more common negative correlation with the growth-sensitive asset class.

Spot Gold (1-Min Chart)

Gold 1 minute chart

In recent months, gold has strengthened considerably and approached overbought conditions prompting traders to look for near-term consolidation. Spot gold started the week higher, gapping up in Sunday night trading to $1660.11, but began trading lower through the week. Friday saw the biggest intraday selloff in the yellow metal since 2013, as it dropped over 3.5 percent intraday.

Gold historical 1 day percent change

Currently sitting at $1584.40, support from consolidation formed throughout January and February could buoy price from a further move down in the short term. Furthermore, continued deterioration in market sentiment could prompt gold to fall further as investors rotate capital into highly liquid assets such as cash and US treasuries.

Gold Forecast
Gold Forecast
Recommended by Thomas Westwater
Get Your Free Gold Forecast
Get My Guide

Spot Gold (Daily Chart)

Daily spot gold chart

--Written by Thomas Westwater, Intern Analyst for DailyFX.com

Contact and follow Thomas on Twitter @FxWestwater

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.