Oil prices fell below $ 50 for the first time in 3 years. Precious metals have been also impacted by the sell-off in financial trading markets.
The market tension brought on by the coronavirus has driven the commodity market into the abyss. Since the closing of 2018, Brent crude oil prices have fallen below $ 50 (approximately 159 liters) for the very first time. Oil prices fell about 14% last week, the biggest drop since 2011.
How is the coronavirus impacting the gold and oil markets?
Prices for other commodities that depend on it periodically, including copper, aluminum as well as zinc, are also dropping. Compared to the start of the year, the cost of 1 ton of copper has decreased by about 11%. Even precious metals, which are regarded as the currency of the crisis, have been unable to stay away from the damage caused by the recent panic in the commodity market.
Friday’s gold price was $ 1,585, down 4% per ounce. At the same time, prices fell by 6% and palladium fell by over 12%. “Buy gold if market sentiment turns negative, sell gold when the market falls,” said Robeco’s multi-asset leader market strategist and asset manager Jeroen Blokland.
Indications of such submission are everywhere. The most crucial German stock market measure fell nearly 13% a week ago. U.S. stocks trade had been decreasing every week. In the current crisis, only long-term government bonds could offer a safe haven.