Gold slid more than 1% to its lowest in a week on Friday as the recent price rallies prompted investors to take profits, but the metal was still on track for a third consecutive monthly gain as the spread of coronavirus gathered pace.
When sentiment is ruled by fear, investors always rush to cash and liquidity, and also sell profitable investments due to margin calls or to cover other investment losses.
Prices hit a 7-year high of $1,689 earlier this week on coronavirus fears.
The virus scare sent world share markets plunging again on Friday, compounding their worst week since the 2008 global financial crisis.
Meanwhile The gold/silver ratio has risen to 96, meaning that silver is lower vis-à-vis gold than at any time in almost 30 years.
Where are commodity prices heading next? Watch Phil Carr at The Gold & Silver Club review Gold with the latest price forecast and predictions:
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