By Barani Krishnan
Gold, once again, became an unintended victim of the Trump administration’s failed attempts to calm Wall Street, falling back under the $1,500 level as investors liquidated to raise cash as the Dow fell beneath the key 20,000 point level.
Gold futures for April delivery on New York’s COMEX settled down $47.90, or 3.2%, at $1,477.90 per ounce.
Spot gold, which tracks live trades in bullion, was down $35.44, or 2.3%, at $1,492.96 by 3:38 PM ET.
“Gold is really caught between a rock and a hard place and that’s depreciating its safe-haven label,” said Tariq Zahir, founder of New York-based Tyche Capital Advisors, which runs a Global Macro Commodities Program. “For now, all eyes are on the Dow and it is taking it on the chin, though for some that also means a buying opportunity to get in at below $1,500.”
The Dow was down nearly 9% late afternoon Wednesday, trading at just over 19,000 points after falling to 18,000 territory.
Gold futures gained just over $39, or 3%, on Tuesday after the Trump administration said it was working on a slew of stimulus measures worth some $1.3 trillion to mitigate the effects of the novel coronavirus, which has infected more than 7,500 Americans and killed over 120, while shutting down large chunks of the U.S. economy.
