(Adds graphic, updates prices)
* Gold slips to over one-month low
* Platinum on track for its worst day since Sept. 1986
* Silver drops to near eight-month low
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
By Brijesh Patel
March 12 (Reuters) - Palladium plunged as much as 28% on
Thursday as panic selling driven by intensifying fears over the
coronavirus pandemic seeped into precious metals, with gold
slumping more than 4% as investors rushed to cover margin calls
in other assets.
Platinum plummeted nearly 13% and silver shed over 7%
earlier in the session.
"It is a rush to cash and a mild panic-type move. What we're
seeing is market participants and investors indiscriminately
selling every asset class," said David Meger, director of metals
trading at High Ridge Futures.
"People are selling gold and silver positions to finance
equity positions or other situations."
Global stocks plunged below bear market thresholds and oil
slid 8% after U.S. President Donald Trump banned travel from
Europe to stem the spread of coronavirus, threatening more
disruption to the world economy. MKTS/GLOB O/R
Auto-catalyst metal palladium XPD= led the bloodbath in
the precious complex, diving to its lowest since early October
2019 at $1,653.51 per ounce.
"Apart from the overall drop across precious metals,
palladium's move was exacerbated by news earlier this week of a
breakthrough in catalytic converter technology, allowing for
less use of the metal, which had damaged overall sentiment,"
said Tai Wong, head of base and precious metals derivatives
trading at BMO. The metal has shed more than 35% since hitting an all-time
high of $2,875.50 on Feb. 27, as demand concerns begin to
overshadow a sharp supply shortfall.
Spot gold XAU= , meanwhile, slid 3.2% to $1,582.35 per
ounce by 3:13 p.m. EDT (1913 GMT). U.S. gold futures GCcv1
settled 3.2% lower at $1,590.30.
Bullion has erased gains from a surge past the $1,700 per
ounce level for the first time since late 2012 on Monday, when
investors made a beeline for safe havens amid the rapid spread
of the virus.
"The Covid-19 pandemic has the global marketplace in panic.
'When in doubt, get out' is the mantra today," Kitco Metals
senior analyst Jim Wyckoff said in a note.
Global central banks have taken steps to help economies to
cope with the growing cost of the coronavirus. The U.S. Federal
Reserve reduced rates in an emergency move last
week. "We might see extreme volatility for 1-2 more weeks until,
hopefully, we get a better handle on the outbreak in Europe and
U.S.," BMO's Wong said.
Further denting metals, the dollar .DXY jumped 1%. USD/
Silver XAG= fell 5.6% to $15.79 an ounce, earlier touching
its lowest since mid-July.
Platinum XPT= lost 11% to $768, on track for its worst day
since September 1986.
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