By Alex Ho
Investing.com – Gold prices see-sawed between gains and losses in Asia Friday morning after the worst stock market day in the U.S. since 1987.
Gold Futures for April delivery hit a high of $1,584 before falling down 1.81% to $1,561.5 by 9:48 PM ET (1:48 GMT).
Investors are looking to the yellow metal to live up to its safe-haven reputation as markets worldwide incur daily losses almost in the double digits.
The heavy stock market losses Friday triggered circuit breakers for Japan’s Nikkei 225 and South Korea’s KOSPI as markets around the world headed into bear territory. Even a $1.5 trillion injection announced by the U.S. Federal Reserve on Thursday was insufficient to calm investors’ jitters.
Swiss bank UBS Group AG wrote in a Thursday note that it expects a reasonable “breather” for gold, even raising its three-month price target to $1,790 per ounce. However, the bank also predicted a retreat as the global economy starts to recover from the current economic turmoil.
The World Health Organization (WHO) declared the COVID-19 novel coronavirus a pandemic on Wednesday. The WHO reported on March 12 that the number of cases has reached 125,288 with 4,614 deaths.
Ben Emons, managing director of global macro strategy at Medley Global Advisors, told Bloomberg that “markets remain in a free-fall as uncertainty persists without a reliable anchor which can create near-term stability.”