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Gold, Bitcoin Price Drops as Investors Flee to Dollars to Cover Coronavirus Losses


Prices of precious metals plunged this week again, as investors fled reserve stores in favor of cash in the wake of extreme market volatility due to panic selling over fears and uncertainty due to the coronavirus epidemic.

Gold fell below $1,455 an ounce on this morning, down from a high $1,560 over the weekend. Today’s loss was the biggest single day price drop since 1983.

In the US, the Federal Reserve attempted to calm market doomsday predictions by implementing an emergency stimulus package which has included slashing interests to near 0% in the hopes of revitalizing market activity and investor confidence.

The US central banking cartel has committed to pumping some $700 billion into the faltering economy to avoid another repeat of last week’s record-breaking stock market crash. However, this move doesn’t seem to have substantially altered the terminal trajectory of markets reacting to governments’ brash moves to shut down whole sections of their national and global economies.

Similarly, Bitcoin has been experiencing regular 24 hour cycles of volatility over the last three weeks, as investors rush to covert to more liquid and hard currencies to cover present and likely future loses.

Other metals fell sharply, including Silver, down to $12.60 per ounce, Platinum, falling to $564 per ounce, its lowest mark since 2002, and Palladium falling to $1,626.53 an ounce, a six-month low.

To compound pressure on the global markets, oil has also been in a downward spiral – a move which was triggered with prudent moves by leading oil producers Saudi Arabia and Russia early last week.

Karan Shah, Commodity and Currency Analyst, Indiabulls Securities, explained how the oil price is bearing-down on global commodity markets:

“Oil prices came under intense pressure on both demand and supply sides, worries about the coronavirus pandemic, slashing oil buying persist, while oversupply fears have grown after top exporter Saudi Arabia ramped up output and slashed prices to increase sales to consumers in Asia and Europe.”

How long can western central banks continue unleashing extreme quantitative easing on their national economies before it risks major economic desablization?

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