The CBOE Gold ETF Volatility Index, a measure of expectations for price swings tracked through exchange-traded fund moves, has more than doubled over the past six sessions to the highest since November 2008. That’s as policy makers worldwide tried to introduce stimulus measures to counter the economic impact of the outbreak.on Wednesday, as investors sold gold in a rush for cash to cover losses elsewhere. A stronger dollar and lower inflation expectations are also eroding bullion’s appeal.
Gold futures for April delivery fell 3.1% to settle at $1,477.90 an ounce at 1:32 p.m. on the Comex in New York. That’s nearly $200 lower than last week’s closing high. On Tuesday, the metal rose as much as 4.6%, fueled by a U.S. plan toMeanwhile, the Federal Reserve reintroduced additionalto stabilize financial markets. In Germany, Angela Merkel said the government will not rule out joint European Union debt issuance.
Other precious metals also declined, with silver’s 14-day relative strength index dropping to about 12 — deep intoterritory. In a normal situation, that would be a sign to some traders of a possible rebound soon.