The gold price ended the recent high on Friday and plummeted. Market observers spoke of profit taking and foreclosures to offset losses in other asset classes. In the afternoon, the price of a troy ounce (31.1 grams) fell from a daily high at $ 1,649 to more than three percent to a daily low at $ 1,571. According to the Bloomberg news agency, it was the biggest drop in the price of gold in one day since mid-2013.
Gold has been in high demand over the past few days because of concerns about the economic consequences of the corona crisis as a safe haven. On Monday, the price of the precious metal rose temporarily to $ 1,689, the highest level in seven years.Commodities expert Daniel Briesemann from Commerzbank explained the falling gold price at the end of the week with forced sales. This was done “to compensate for other losses,” it said in an analysis. Above all on the stock markets there was another sharp drop in prices shortly before the weekend. The recent rate-cutting fantasies have not been able to support the gold price either. Recently, there has been increasing speculation in the market for key interest rate cuts in the USA and the euro zone.
Goldmine stocks were hit even harder. Until recently, these were extremely strong. But in the end these heavy losses also had to be accepted. Barrick Gold, for example, fell from almost $ 30 in just a few days to a temporary $ 24.27 today. Across all industries, investors are trying to keep their profits safe. Even if many mining stocks are now valued extremely cheaply, investors should still wait until they see some relaxation before buying.