2020.03.1019:15:00UTC+00Gold Prices Continue To Slide On Improved Risk Sentiment

Gold prices tumbled on Tuesday as risk appetite got a boost from speculation of more central bank rate cuts and possible fiscal stimulus that helped lift equities after the recent carnage.

Spot gold sank $27.70 or 1.65 percent to $1,651.90 per ounce, after having touched its highest since December 2012 at $1,702.56 on Monday on fears around the coronavirus spread. U.S. gold futures were down $22.70 or 1.36 percent at $1,652.70.

The bottom dropped out of the oil market on after Saudi Arabia threatened to flood the market following a spat with Russia over production cuts. Ongoing coronavirus fears also weighed on sentiment as stocks plummeted to their worst losses since the 2008 financial crisis.

But some of the equity markets have rebounded from their heavy losses on Tuesday as investors welcomed signs that policymakers would launch significant stimulus to combat the coronavirus outbreak.

The dollar recovered from heavy losses against the yen after U.S. President Donald Trump said he would press lawmakers to enact a payroll tax cut amid a roiling coronavirus pandemic.