Gold prices fell 1% on Monday in light of investors ’tendency to take profits after gold crossed the level of $ 1700 an ounce for the first time in more than seven years In light of the fear of spreading the Corona virus.
According to Reuters, gold fell in immediate transactions 0.6 percent to 1663.35 dollars an ounce by 0553 GMT, after touching its highest levels since December 2012 at 1702.56 dollars earlier. U.S. gold futures fell 0.4 percent to $ 1665.30.
The sale is due to more technical factors than anything else. Avtar Sandu, commodities manager at Philip Futures, said that traders put $ 1700 as a (target) price for them, so there is a lot of profit taking once the target is reached.
But he said the sale was temporary, adding that part of that was due to margin buying positions as the rapid spread of the virus led to a sharp decline in global stocks.
Global stocks fell, while equity futures fell 5 percent as investors sought to buy assets that were considered a safe haven.
The yen jumped to the highest level in more than three years against the dollar, and US ten-year Treasury yields fell to a record low.
Gold prices jumped 1.7 percent earlier in the session because of a high demand for safe havens, as the results of Chinese trade came in worse than expected, and Italy held a quarter of its population in quarantine due to the Corona virus and stock markets fell, Awanda analyst Jeffrey Haley said. >
For other precious metals, silver fell 3.9 percent to $ 16.63 an ounce. Palladium fell 4 percent to $ 2,463 an ounce, while platinum fell 3 percent to $ 873.50 an ounce.
