Gold prices were once again lower on Tuesday during Asian session
At the opening of the European session, gold price is trading at about $1480 level.
As a safe-haven traditionally, gold fell for several trading days already, even the new coronavirus pandemic caused a big drop in global stock markets. It is reported that investors sold their gold holdings to cover cash losses incurred elsewhere.
Most analysts believe that the relatively high level of gold price is good for “cash out”. Other analysis also believes that the global economy is likely to be in recession and deflation, so that the precious metal basic function will be weaken.
If the economy is gloomy or even halted, no matter consumption demand or industrial demand will drop greatly. Even if the Fed cut interest rate to zero, these demand are unlikely to exist unless the epidemic is resolved.