Record gold prices tumble as global economy takes hit

Image: Market Index

Australian gold prices have dropped by $35.50 an ounce as the worldwide economy is affected by the coronavirus.

ABC Bullion listed a seven-year-high price of $2558.53 an ounce on Wednesday, which dropped to $2523.03 at the time of writing on Friday.

Gold prices have also dropped by $US150 ($239) an ounce in the United States.

According to Market Index, gold prices were sitting comfortably at $US1678.60 on Monday before crashing to $US1579.80 on Friday.

This represents a 5.76 per cent drop during the past week.

Despite gold generally being seen as a safe haven for investors during times of market turmoil, prices fell as fears of a coronavirus pandemic swept the globe.

“Gold has continued to track markets lower with the sell-off fuelling a break of multi-month uptrend support,” DailyFX strategist Michael Boutros said.

“The decline is now approaching key lateral support just lower and we’re looking for a reaction.

“The decline comes amid a huge spike in volatility and a massive sell-off in broader risk markets on growing fears of a prolonged coronavirus global pandemic.”

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