Gold becomes cheaper by 1%, palladium – by 10% due to a drop in oil

US, WASHINGTON (ORDO NEWS) — The price of gold fell more than 1% to an almost two-week low on Tuesday, and palladium fell 10% after a collapse in the oil markets caused panic selling of assets and forced investors to sell precious metals to cover losses.

By 15:00 UTC, the spot price of gold fell 1.63% to $ 1,665.35 per troy ounce.

Palladium fell 10% to $ 1,947.75 an ounce, while platinum fell 5.88% to $ 725.25 and silver fell 4.02% to $ 14.75.

“The collapse in oil prices today continued, again provoking an escape into cash, and no market is safe,” said Ole Hansen of Saxo Bank, adding that the level of $ 1.635 could be the next reference for gold.

Concerns about credit defaults are growing, and “in such an environment, gold is not able to withstand the pressure from the need for deletion,” he added.

May futures for WTI American oil fell back into negative territory on Tuesday after falling to almost minus $ 40 in the previous session because of fears that the US will run out of storage capacity in the context of an excess of raw materials caused by the coronavirus pandemic.

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