Will Gold Survive the COVID-19 Crisis?

Gold price will remain under pressure in the upcoming weeks due to the fast-spreading of coronavirus and its impact on global travel. The yellow metal is likely to fall another 8 percent to $1,400 an ounce by the end of this month, say industry executives in Dubai.

They foresee a recovery in prices largely depending on oil prices, financial market performance, travel restrictions and the Covid-19 spread in coming months.

Gold tumbled as much as 4.5 percent on Friday, its biggest weekly loss since 1983, as investors began a selling spree to collect cash and meet margin calls across other markets that have been battered by the impact of the coronavirus outbreak.

But the recovered later and spot gold closed 3.78 percent lower at $1,529.71 per ounce on Friday.

For the week, the gold was down more than 9 percent, the most since 1983. It has shed nearly $200 from Monday's over seven-year peak of $1,702.56 per ounce.

Anil Dhanak, managing director of Kanz Jewels, said gold price is fluctuating on account of worries about the economic impact of coronavirus after the US suspended travel from virus-hit Europe.

"This travel ban was a surprise as well as a big shock to the market. We can state that gold is now feeling the pinch from the fall in financial markets and travel ban. I feel that the price might come down to around $1,400 by the end of March and will go up later, said Dhanak.