Gold prices fell today, Wednesday, while covering the strength of the dollar and the craving for liquidity following the historic collapse of US crude futures contracts on support through purchases of the yellow metal as a safe haven.
And gold fell in spot trading 0.2% to $ 1682.35 an ounce by 0623 GMT, after touching the lowest level in two weeks on Tuesday as the collapse of oil prices led to panic sales in the wider markets and fueled this craving for liquidity.
Gold fell in the futures trading in the United States 1% to 1704.10 dollars.
In exchange for major competitors, the dollar hovered near a two-week high yesterday.
Oil prices fell again today, Wednesday, Brent crude fell to its lowest level since 1999 while the market is suffering from a huge glut amid a collapse in demand due to the outbreak of the Corona virus. The contract for the nearest US crude matrix for the first time in history turned negative on Monday.
Analysts said that gold may be subject to longer-term pressures as it is used to hedge in the face of inflation and lower oil prices tend to increase deflationary pressures in the market.
They added that the massive financial and monetary stimulus measures by global central banks, especially the Federal Reserve (the US central bank) and governments, would keep gold supported.
In terms of other precious metals, palladium rose 2.6% to $ 1972.57 an ounce after touching the lowest level in nearly a month in the previous session.
And platinum gained 0.4% to $ 749.29 an ounce, while silver lost 0.8% to $ 14.80.