• 2 days Pipeline Hackers Lose Access To Ransom Funds
  • 2 days Military Coups Are Big Business
  • 3 days Crypto Market Crashes As Tesla Turns Its Back On Bitcoin
  • 4 days Gold Bulls Are Facing An Uphill Battle
  • 5 days Has The Dogecoin Hype Fizzled?
  • 7 days America's Semiconductor Shortage Is Just Getting Started
  • 10 days The EU Begins Backtracking On China Trade
  • 10 days Americans Are Sick Of Unfair Taxation
  • 13 days No Jab, No Job: The New Hardline Policy of U.S. Employers
  • 15 days What’s Included In Biden’s $6 Trillion Economic Plan?
  • 16 days The “Great Car Comeback” Brightens Oil Demand Outlook
  • 17 days The 3 Most Profitable Covid-19 Vaccine Stocks
  • 19 days Beijing Launches Digital Currency To Break AliPay-WeChat Duopoly
  • 20 days The New Economic World Order After Covid-19
  • 24 days 3 Signals To Watch For A Stock Market Correction
  • 26 days Netflix Earnings Red Alert: Subscriptions Could Underwhelm
  • 27 days Wall Street Banks Are Back
  • 27 days Elon Musk’s SpaceX Scores Big Win Over Jeff Bezos’ Blue Origin
  • 28 days Which Country Is The World’s Largest Investor In Batteries?
  • 29 days Are Bitcoin’s Environmental Risks Overblown?
Positive Economic News Could Be Bad For Gold

Positive Economic News Could Be Bad For Gold

While declining unemployment rates may…

A Looming Decision From The Fed Could Send Gold Soaring

A Looming Decision From The Fed Could Send Gold Soaring

The European Central Bank (ECB)…

Gold Inches Closer To $2,000

Gold Inches Closer To $2,000

Gold prices advanced higher on…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Gold Crashes Below $1,600

Gold

Gold could not escape the carnage on global financial markets on Thursday as the growing panic about the spread of coronavirus infections outside China saw the precious metal suffer one of its worst one-day drops on record.

Gold for delivery in April dropped at the open on the Comex market in New York and kept declining – hitting a day low of $1,560.40 an ounce just before midday, down $81.90 an ounce or 5% compared to Wednesday’s close.

In early afternoon trade the price climbed back above the $1,600 level, before weakening again to trade $70 down by 4:30pm with 55 million ounces of gold changing hands.

(Click to enlarge)

On Monday gold hit a seven-year high of $1,704.30 an ounce and remains up $37 year-to-date on the back of record-breaking ETF buying. Global gold-backed ETFs had $4.9 billion or 84.5 tonnes of net inflows in February, boosting holdings to new all-time highs of 3,033 tonnes.

Wild swings

Thursday was the biggest intra-day drop in the price since April 15, 2013 when gold was also trading in the mid-$1,500s. Gold ended that day more than $87 below the previous closing – and never recovered on its way to $1,050 an ounce three years later. Related: How Airbnb Uses Artificial Intelligence To Identify Risky Renters

In that session, 10 million ounces traded within 30 minutes – described as a “shock and awe” trading strategy by a short seller.

Gold hit a record $1,909 an ounce intra-day on 23 August 2011, but the next day suffered one of its few triple digit one-day losses when it plummeted $105, ending the week down more than 10% from the all-time high.

Adjusted for inflation, gold’s highest price point ever was on January 21, 1980 when the precious metal hit $850, only to plunge the very next day to $737.50, a 13% fall.

The biggest fall in percentage terms came in February 1983, when the yellow metal fell from $475 to $408.50 over two days, a 14% decline.  

By Mining.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment