2020.03.1710:48:00UTC+00Gold Prices Fall As Dollar Stands Tall

Gold prices fell on Tuesday as investors liquidated profitable positions to cover losses elsewhere. A firmer dollar also weighed on the precious metal.

The U.S. dollar is strengthening despite the Federal Reserve cutting rates twice over the past two weeks to near zero.

Spot gold tumbled 2.9 percent to $1,471.72 per ounce, after having slumped over 5 percent on Monday to its lowest since November 2019. U.S. gold futures were down 1 percent at $1,472.30.

Investors preferred cash over holding any asset as countries and major central banks ramped up measures to protect their economies from the outbreak, which has infected more than 182,000 people globally.

"As the virus spreads, the case for a coordinated and synchronized global fiscal stimulus is becoming stronger by the hour," International Monetary Fund Managing Director Kristalina Georgieva said.

U.S. President Donald Trump on Monday said the coronavirus outbreak could last until July or August and that the economy "may be" heading for recession.

The G7 leaders have pledged to do "whatever is necessary" to fight the coronavirus pandemic, ranging from deploying fiscal measures to supporting efforts to develop a vaccine.

"We are committed to doing whatever is necessary to ensure a strong global response through closer cooperation and enhanced coordination of our efforts," the leaders said in a joint statement.