By Barani Krishnan
Investing.com - Gold lost its key $1,600 support on Thursday as investors cashed out their long positions in the yellow metal in a scramble to cover margins and losses on Wall Street amid the U.S. ban on most incoming European travelers.
Gold futures for April delivery on New York’s COMEX settled down $52.10, or almost 3.2%, at $1,589.30 per ounce. It fell more than $80 at one point to reach an intraday low of $1,560.65.
It was the third-straight day of losses for gold, which lost about 5% since the start of the week amid the tumble on Wall Street. U.S. stocks plunged 10%.
“Gold prices are in freefall as investors scramble for cash,” said Ed Moya, analyst at online trading platform OANDA.
“Gold investors are scratching their heads as the fear trade is only seeing steady flows into Treasuries right now. Gold should see some technical buying around the $1,550 area, but if that breaks, we could easily see prices slide another $100 to $1,450.”
With Thursday's tumble, gold has already lost $110 on the week, putting it on track to a loss of 6.6%.