Gold
continued to fall during Tuesday's trading, losing more than $27 of its value,
amid continued selling of among all assets, as the panic from the coronavirus
spread prompted investors to resort to cash.
As
of 07:39 GMT, spot gold hovered around $1,485.55 per
ounce, where the precious metal hit the lowest level since September 28, 2019
at $1450.90 during yesterday’s trading session.
The
losses in the yellow metal come amid heightened concerns about economic losses
caused by the coronavirus outbreak, prompting investors to seek cash.
In
a surprise move on Sunday, the Fed cut interest rates by nearly 100 basis
points in an effort to calm markets but it seems that the second emergency move
failed to tranquil distressed markets.
Later
in the day, the U.S. retail sales, industrial production and the number of jobs
available in the United States are scheduled to be released.
The
coronavirus continued to spread globally, with the number of infections
exceeding 170,000 cases worldwide and the death of more than 6,500 people.
As
for other precious metals, silver slumped by 1.28 percent to $12.75 an ounce, after
hitting the lowest level since 2009 in the previous session at $11.80.
Palladium
descended by 4.23 percent to trade at $1,450 an ounce, while platinum went in
the opposite direction by increasing about one percent at $661.25.
The
dollar index, which tracks the performance of the U.S. currency against a
basket of six major currencies, advanced 0.32 percent at 98.46, to complete its
good performance in the last five sessions.
The
rise in the U.S. dollar exerted further pressure on commodities, especially
gold that failed to gain demand as an alternative investment for the dollar.
Industrial
metals were most hit by the sell off, given the rising fears that a global
recession would cut demand from businesses and households.
Gold is meanwhile
trading below daily SMA 200 depicted at $1498, but the metal is shielded by
strong support located at $1450.