Gold sank as much as 5.3% on Tuesday, facing its worst one-day rout in seven years, as a return of risk appetite following encouraging economic numbers and hopes of new coronavirus relief package boosted the S&P 500 to near record highs.
Gold is down over $100 since Monday.
Other precious metals also took a beating, with silver plunging as much as 13.8%, its biggest daily decline since October 2008. It was down 13.4% to $25.24 per ounce during noon.
Platinum dropped 4.7% to $940.08, and palladium slid 4.7% to $2,116.33.
Spot gold tumbled 5.2% to $1,921.50 per ounce, retreating sharply from Friday’s record high of $2,072.50 and was set for its worst day since June 2013.
Edward Moya, senior market analyst at broker OANDA, said, “This feels like a mini crash. We could not overcome the early morning headlines of a Russian potential vaccine, and there was just continued optimism flowing into stocks”.
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