The gold price is dropping by more than 1 percent on Tuesday, sinking below the key mark reached during the prior day at $1,700 per troy ounce, due to increased demand for risky assets and a stronger dollar amid expectations of global measures to mitigate the effects of coronavirus.
Gold Futures for delivery in April eased by 1.30 percent on Comex, to $1,653 per troy ounce.
Hopes for incentives and a recovery in oil prices also lead to the demand growth for risky assets, with investors shifting from the “safe haven,” the analyst added.
Recall, Gold surged by 1.7 percent on Monday, registering a record high of $1.702.56 per ounce since December 2012 after the collapse of global stock markets amid concerns about coronavirus and a sharp drop in oil prices caused by the initiated price war between Saudi Arabia and Russia.
Meanwhile, U.S. President Donald Trump announced “significant” steps to shelter the economy from the coronavirus impact, and Japan announced a second package of measures worth about $4 billion, designed to mitigate the effects of the infection outbreak.
Palladium futures decreased by 3.1 percent to $2.412 an ounce, silver prices lost 0.99 percent, to reach $16.88 per ounce at 1524 GMT.