Gold, even when the financial markets world over are witnessing bloodbath have failed to lure investors as 'safe haven'. In line with other assets, in overnight trade there has been seen fall of 4% in the precious metal which even moved beyond levels of $1700 per ounce just few sessions ago in the global markets.
Gold Prices In India
On the MCX, gold after previously hitting Rs. 45000 levels has now been dragged steeply lower to Rs. 41,443 per 10 gm. The price crash in the yellow metal has come on the back of investors liquidating their positions in bullion for covering margin calls.
Further as per a Reuters report, to cover broad based losses in the current rout, investors have been ditching assets which have been considered safe haven including gold and bonds.
Other precious metal also hit
There has been reported huge decline in other metals including platinum which has sunk in price by 10%.
Only Assets Gaining In Current Rout
With no respite on most assets given the COVID 19 pandemic, the only assets gaining are Japanse Yuan and US Dollar index which gained for the third straight day to 98 on March 12.
Despite Losses Potential To Scale To $1800-$1850 Per Oz
As things would stabilise, experts are of the view that gold can run up to levels of $1850 per ounce and hence investors at the current dip can cushion their financial portfolio with up to 20% holding in gold and earn significant capital appreciation.