Gold price drops as investors hunt for cash to cover market losses

16 Mar, 2020 13:32

Prices of precious metals are falling on lack of investor confidence that stimulus measures taken by the world’s central banks are enough to steady the markets.

On Sunday, the US Federal Reserve slashed rates to near zero and promised to pump $700 billion into the economy. Other central banks have made similar moves to try avoid market turmoil.

Gold has extended last week’s losses as the price fell below $1,464 an ounce on Monday. The yellow metal has seen the biggest drop in price since 1983. Although traditionally a safe haven, investors are selling gold to cover their positions on other markets.

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Prices of other precious metals are also crashing. Silver fell 14 percent to $12.61 an ounce, touching the lowest in more than a decade. Platinum plummeted as much as 26 percent to $564 an ounce, hitting the lowest since 2002. Palladium was down 10 percent to $1,626.53 an ounce, reaching the lowest since September.

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