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It’s been another very volatile week for gold. Prices extended last week’s declines to trade lows of 1451.
The sell-off this week has continued amidst the ongoing sell-off across a broad range of instruments. And equities and commodities are leading the fall lower.
The week has seen a further slew of central bank policy announcements. The Fed, the BOJ, the RBNZ, the BOE & the RBA each announced further rate cuts.
The Fed has now moved its policy rate down to 0% for the first time in history. The coordinated action from central banks this week has, however, been unable to boost sentiment in market. This is due to the worsening crisis of coronavirus which has fuelled a surge in uncertainty.
Gold would typically be rallying against a drop in USD and equities. But the sell-off we are currently has been attributed to a need to fund margin calls in equity positions as markets continue to tumble.
With the US announcing 30-day travel restrictions and major cities such as Los Angeles a...
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