Spot Gold dropped as much as 2.1% today to reach $1,482.83 an ounce and it is a long way from the 12% high of last week.
The decline of Gold is linked to investors' need for cash, said Stephen Innes - Cheif Market Strategist at AxiCorp Ltd.
Investors are looking to raise cash to cover for losses on other markets amid a volatility surge across various classes of assets. Donald Trump warned of a possible recession with the impacts of the outbreak disrupting the economy until summer.
Other precious metals have had mixed results this morning with Silver losing around 1.4% after losing 12% yesterday.
US stocks worst day since 1987
On Monday, the S&P500 fell by 12%, just one day after the Fed announced an emergency rate cut. The slump came as the United States and other countries are imposing more strict measures to prevent the outbreak from causing more damage.
However, the aggressive measures have a deepening impact, as global shares, prices of oil, US bonds and indices suffering.
“There is forced selling all over the place,” said Jeffrey Gundlach, chief executive at DoubleLine Capital. “The Fed is not buying stocks or junk bonds and that is where you are seeing massive pressure.”
Asian equities steady
The Nikkei 225 was up by 0.06% at 17,011.46 and the ASX200 gained 5.83% today, closing at 5,293.40.
New Zealand announced a stimulus program to help the economy and except that, there was no major development in regards to tackling the long-term impact of the coronavirus outbreak.
In regards to currencies, the AUD/USD hit a new low for more than 11 years.
Financial Events to watch for today
12:30 GMT USD Retail Sales (MoM)