• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    gold investing

    Markets Go Bear; Gold Slumps on Trump Travel Ban

    Georgia Williams
    Mar. 12, 2020 04:50PM PST
    Precious Metals
    INDEXSP:.INX

    Gold slipped below US$1,600 after the Trump administration banned flights from Europe in an effort to curb the spread of COVID-19. 

    The price of gold slipped below US$1,600 an ounce on Thursday morning (March 12) for the first time since mid-February. The drop came after US President Donald Trump’s announcement that the US will implement a travel ban this week on flights from Europe in an effort to curb the spread of the coronavirus that causes COVID-19. 

    Falling 3 percent from US$1,641 to US$1,577 by 11:30 a.m. EDT, the yellow metal marked its fourth straight day of losses since hitting a seven year high of US$1,700 on Sunday (March 8).

    Attempts to limit the global spread of COVID-19 have fallen short, and the World Health Organization declared the virus a global pandemic on Wednesday (March 11).

    To date, there have been 4,751 deaths attributed to COVID-19, and more than 100,000 people have contracted the illness. Thankfully, 68,672 people have recovered from it.

    The Trump administration’s travel ban will go into effect on Friday (March 13) at midnight and will last 30 days. The flight restrictions apply to 26 countries in the Schengen Area, a region with little border security that includes Italy, Germany, France, Spain and 22 other neighboring nations; it does not include the UK.

    The decision to restrict most travel originating from Europe sent the markets into a tailspin, with US stocks sliding into bear market territory. The S&P 500 (INDEXSP:.INX) opened 7 percent lower, weighed down by the uncertainty now infused into the global supply chain.

    The drastic decrease prompted a temporary trading halt on Wall Street shortly after North American markets opened to allow investors a chance to regain their composure.

    If the US market closes in bear market territory — 20 percent lower than its all-time high — it will mark the end to the longest bull market in American history, reversing gains made in recent years.

    “It’s not just the fear of the economy going weak, but basically being on the brink of shutting down,” Dennis Dick, a proprietary trader at Bright Trading, told Reuters. “It’s mass selling across the board (and) we are pricing in a potential to go into another financial crisis.”

    Calls for cash on the currency derivatives market have ballooned to the highest level in years, which may explain some of gold’s price decrease as investors look to liquidate the safe haven asset for dollars.

    Palladium also experienced a massive value drop, falling 28 percent from the previous session to US$1,575 an ounce by 11:50 a.m. EDT. The decrease has left the autocatalyst metal on track for its fourth straight day of losses and its most significant one day decline.

    By midday, gold had clawed back some its early losses to briefly climb above US$1,600. The currency metal then slipped back below US$1,590.

    As of 3:05 p.m. EDT, gold was selling for US$1,577.87.

    Don’t forget to follow us @INN_Resource for real-time updates!

    Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

    germanyindexsp:.inxdonald trumpgold investings&p 500
    The Conversation (0)

    Go Deeper

    AI Powered
    Hand holding gold bar in front of blurred building.

    Gold Price Closes in on US$3,900 as US Government Shuts Down

    Gold Dips Below $1400/Ounce While Dollar Gains Momentum

    Latest News

    Canada One Mining: Positioned for Significant Copper Discovery in  British Columbia

    Locksley Produces High Grade Antimony Concentrate

    Providence Gold Mines: Unlocking Untapped, High-grade Gold Deposits in the historic Mother Lode Gold Belt in California

    Blue Jay Gold: Building the Next Multi-million-ounce Gold Portfolio in Canada

    1,173 Soil Geochemistry Samples Completed

    More News

    Outlook Reports world

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    Blue Jay Gold

    Providence Gold Mines

    PHD:CC

    Mount Hope Mining

    MHM:AU

    Walker Lane Resources

    WLR:CC

    Rua Gold

    RUA:CC

    Golconda Gold

    GG:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES